Isadore Bell Company Granted 8 Million of Its No Par

question 13

Multiple Choice

Isadore Bell Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2018, the grant date. When calculating diluted EPS at December 31, 2019, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2019?

• A) 2 million
• B) 2.67 million
• C) 6 million
• D) 8 million

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Definitions:

Reproductive Isolation

The end of gene flow between populations; part of speciation.

Pollinators

Animals that facilitate the transfer of pollen from the male structures of a flower to the female structures, enabling fertilization.

New Alleles

Variations in a gene that arise due to mutation, creating diversity within a population's gene pool.