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diluted earnings per share?

diluted earnings per share?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What amount should be reported as diluted earnings per share?

ACayetano Company had 100,000 ordinary shares outstanding throughout the current year. In addition, at the beginning of current year, the entity had issued share options that allowed employees to purchase 40,000 ordinary shares. The option exercise price is P10 per share. The average share price for the year was P16. The entity had no other potentially dilutive securities. The net income for the year was P2,000,000. What amount should be reported as diluted earnings per share?
Transcribed Image Text:ACayetano Company had 100,000 ordinary shares outstanding throughout the current year. In addition, at the beginning of current year, the entity had issued share options that allowed employees to purchase 40,000 ordinary shares. The option exercise price is P10 per share. The average share price for the year was P16. The entity had no other potentially dilutive securities. The net income for the year was P2,000,000. What amount should be reported as diluted earnings per share?
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