The 2011 Net Income of Atwater Inc

question 29

Multiple Choice

The 2011 net income of Atwater Inc. was $200,000 and 100,000 shares of its common stock were outstanding during the entire year. In addition, there were outstanding options to purchase 10,000 shares of common stock at $10 per share. These options were granted in 2008 and none had been exercised by December 31, 2011. Market prices of Atwater's common stock during 2011 were

The amount that should be shown as Atwater's diluted earnings per share for 2011 (rounded to the nearest cent) is

• A) $2.00.
• B) $1.95.
• C) $1.89.
• D) $1.86.

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