Knowledge Check 01 Whitney Corporation granted stock options that permit certain executives to buy 10,000 common shares at an exercise price of $10 per share. The fair value of an option was $5 at the grant date. Forty percent of the options were vested. What is the total amount of the "proceeds" from exercise of the hypothetical stock options that Whitney would assume in calculating diluted EPS?

Knowledge Check 01 Whitney Corporation granted stock options that permit certain executives to buy 10,000 common shares at an exercise price of $10 per share. The fair value of an option was $5 at the grant date. Forty percent of the options were vested. What is the total amount of the "proceeds" from exercise of the hypothetical stock options that Whitney would assume in calculating diluted EPS?

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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