Stine Inc Had 500,000 Shares of Common Stock Issued and Outstanding

question 87

Multiple Choice

Stine Inc. had 500,000 shares of common stock issued and outstanding at December 31, 2014. On July 1, 2015 an additional 500,000 shares were issued for cash. Stine also had stock options outstanding at the beginning and end of 2015 which allow the holders to purchase 150,000 shares of common stock at $28 per share. The average market price of Stine's common stock was $35 during 2015. The number of shares to be used in computing diluted earnings per share for 2015 is

• A) 1,120,000
• B) 1,030,000
• C) 870,000
• D) 780,000

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Definitions:

Job Characteristics Model

A theory that suggests jobs can be designed to enhance employee motivation, satisfaction, and performance by incorporating five core job dimensions.

Flexible Working Hours

Gives individuals some amount of choice in scheduling their daily work hours.

Flextime

A flexible working arrangement that allows employees to choose their work hours within a set range, promoting work-life balance.

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Increasing an employee's responsibilities and control over their work, often to enhance motivation and job satisfaction.