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:

Inference Forms

Patterns or structures of logical reasoning that derive conclusions from premises based on rules.

MP

An abbreviation for Modus Ponens, a form of argument in logic where if a conditional statement ("if P, then Q") is accepted, and the antecedent P holds, then the consequent Q logically must also hold.

MT

An abbreviation often referring to Modus Tollens, a form of deductive argument where the consequent in a conditional proposition is negated, leading to the negation of the antecedent.

Simp

Slang for a person who overly defers to someone else, typically a man excessively reverent or submissive towards a woman.