McManus Inc

question 86

Multiple Choice

McManus Inc.reported net earnings of $400,000 for the year.McManus has 200,000 shares of common stock outstanding all year.On March 31,the company granted 40,000 stock options that allow employees to purchase shares for $15 each.The company stock has averaged $20 in the market during the year.Compute the basic and diluted EPS.

• A)basic EPS $2.00; diluted EPS $1.67
• B)basic EPS $2.00; diluted EPS $1.91
• C)basic EPS $2.00; diluted EPS $1.93
• D)basic EPS $1.93; diluted EPS $1.93

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Definitions:

Cultural Competence

The ability to understand, communicate with, and effectively interact with people across cultures by acknowledging and respecting their beliefs and behaviors.

Cultural Competencies

The ability to understand, communicate with, and effectively interact with people across cultures.

Population Parameter

A numerical value that represents a characteristic of a population, such as a mean, variance, or proportion.

Sample Representative

A subset of a population that accurately reflects the members of the entire population.