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?
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
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![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F394b0fb6-966e-445c-9e31-87755310a1e3%2Fa31f816e-8d99-4612-80e6-b9f621da4aa6%2Fpdx3mwd_processed.png&w=3840&q=75)
Transcribed Image Text: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?
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