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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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