The Calculation of Diluted Earnings Per Share Assumes That Stock

question 15

Multiple Choice

The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to buy treasury stock at:

• A) The average market price for the reporting period.
• B) The market price at the end of the period.
• C) The purchase price stated on the options.
• D) The stock's par value.

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Definitions:

Colour Vision

The ability of the eye and brain to perceive differences in wavelengths of light, enabling humans and other animals to see a variety of colors.

Defective Receptors

Abnormal proteins on the surface of cells that impair the cell's ability to respond to stimuli.

Amplitude

In physics, amplitude refers to the maximum distance moved by a point or object from its equilibrium position in a periodic motion, such as in waves or vibrations.

Perceive

To become aware of, know, or identify by means of the senses.