Realty1 Has 40,000 Outstanding Stock Options

question 14

Multiple Choice

Realty1 has 40,000 outstanding stock options.Its net income for the year is $250,000.Each option allows the holder to purchase a share of stock for $14.The average market value of the shares for the year was $17.What is the incremental income per common share?

• A)$0.00
• B)$1.00
• C)$1.50
• D)$2.00

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Definitions:

Target Market

A specific group of consumers at whom a company aims its products and services, characterized by similar demographic, psychographic, or behavioral traits.

Marketing Efforts

Various activities undertaken by companies to promote and sell their products or services to the target audience.

Market Segment

A subgroup of people or organizations within a broader market that share similar characteristics, needs, or purchasing behaviors.

Relay for Life

A fundraising event organized by the American Cancer Society, aimed at supporting cancer research and patients.