The 2014 Net Income of MNO Was $300,000, and 100,000

question 140

Multiple Choice

The 2014 net income of MNO was $300,000, and 100,000 of its common shares were outstanding during the entire year.In addition, outstanding options existed to purchase 10,000 common shares at $10 per share.These options were granted in 2012 and none had been exercised by December 31, 2014.MNO earned interest at 8% and had a 50% tax rate.The amount, which should be shown as MNO's diluted earnings per share for 2014, is (rounded to the nearest cent) .

• A)$2.73
• B)$2.80
• C)$2.69
• D)$2.76

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Definitions:

Partial ANOVA Table

A simplified presentation of the results from an Analysis of Variance, showing selected sources of variation and their impact on a dependent variable.

Significance Level

The threshold below which a result is considered statistically significant, commonly used in hypothesis testing to determine if results can reject the null hypothesis.

ANOVA Table

A statistical table used to analyze the differences among group means in a sample.

Critical Value

A threshold in hypothesis testing that determines the boundary for rejecting the null hypothesis.