Harvey Inc

question 43

Multiple Choice

Harvey Inc.reported net earnings of $500,000 for the year.Harvey has 200,000 shares of common stock outstanding all year.Two years ago the company granted 20,000 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 $2.50; diluted EPS $2.44
• B)basic EPS $2.50; diluted EPS $2.50
• C)basic EPS $2.44; diluted EPS $2.44
• D)basic EPS $2.50; diluted EPS $2.27

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Definitions:

China

The world's most populous country, with a complex economy that is one of the largest globally and a rich cultural history.

Soviet Union

A former federal socialist state in Eastern Europe and Northern Asia, existing from 1922 until its dissolution in 1991, comprising multiple Soviet republics.

Communist System

A political and economic system aiming for a classless society, where the means of production are owned and controlled by the community as a whole.

Consumer Decisions

This term refers to the choices made by individuals or groups regarding the consumption of goods and services.