The Computation of the Additional Shares to Be Issued on the Exercise

question 72

Multiple Choice

The computation of the additional shares to be issued on the exercise of stock options assumes that the firm would repurchase common shares on the open market using an
Amount equal to the sum of all the following except:

• A) any cash proceeds from such exercise
• B) net incremental shares issued
• C) any unamortized compensation expense on those options
• D) any tax benefits that would be credited to additional paid-in capital

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