In calculating earnings per share, a company uses the treasury stock method when a. it recognizes the assumed impact of exercising outstanding warrants. b. it develops a methodology to handle the premium paid on exercised share options. c. it needs to value the cash received for a convertible bond. d. it needs to value treasury stock repurchased during the year.
In calculating earnings per share, a company uses the treasury stock method when a. it recognizes the assumed impact of exercising outstanding warrants. b. it develops a methodology to handle the premium paid on exercised share options. c. it needs to value the cash received for a convertible bond. d. it needs to value treasury stock repurchased during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In calculating earnings per share, a company uses the
treasury stock method whena. it recognizes the assumed impact of exercising outstanding warrants.b. it develops a methodology to handle the premium paid on exercised share options.c. it needs to value the cash received for a convertible bond.d. it needs to value treasury stock repurchased during the year.
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