Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations) Numerator Denominator Earnings per Share Basic Diluted
Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations) Numerator Denominator Earnings per Share Basic Diluted
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Exercise 19-2O (Algo) EPS; shares issued; stock options [LO19-6, 19-7, 19-8, 19-9]
Stanley Department Stores reported net income of $776,000 for the year ended December 31, 2021.
Additional Information:
Common shares outstanding
Incentive stock options (vested in 2020) outstanding throughout 2021
(Each option is exercisable for one common share at an exercise price of $23.00)
During the year, the market price of Stanley's common stock averaged $27.60 per share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $36, 000 of 10% short-term bank notes.
The company's income tax rate is 25%.
Jan. 1, 2021
90,000
24,000
Required:
Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do
not round intermediate calculations)
Numerator
Denominator
Earnings per Share
Basic
%3D
Diluted
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bc7a40b-dffa-4a62-bd66-b416eeb3fe46%2F9e631d4f-da8a-4378-ae77-9356af1d1efc%2F1d6ja1_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 19-2O (Algo) EPS; shares issued; stock options [LO19-6, 19-7, 19-8, 19-9]
Stanley Department Stores reported net income of $776,000 for the year ended December 31, 2021.
Additional Information:
Common shares outstanding
Incentive stock options (vested in 2020) outstanding throughout 2021
(Each option is exercisable for one common share at an exercise price of $23.00)
During the year, the market price of Stanley's common stock averaged $27.60 per share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $36, 000 of 10% short-term bank notes.
The company's income tax rate is 25%.
Jan. 1, 2021
90,000
24,000
Required:
Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do
not round intermediate calculations)
Numerator
Denominator
Earnings per Share
Basic
%3D
Diluted
%3D
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