Warrants Exercisable at $15 Each to Obtain 25,000 Shares of Common

question 29

Multiple Choice

Warrants exercisable at $15 each to obtain 25,000 shares of common stock were outstanding during a period when the average and year-end market price of the common stock was $30.Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted-average number of outstanding common shares by

• A) 5,000
• B) 10,000
• C) 11,000
• D) 12,500

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Definitions:

Employees

Individuals hired by a company or person to perform work in exchange for compensation.

Boss

An individual in charge of directing or supervising workers within an organization, responsible for decision-making and leadership.

Theory X

A management theory assuming employees are inherently lazy and will avoid work if they can, necessitating a controlling management style.

Physiological Needs

Basic human necessities required for survival, such as air, food, water, shelter, and sleep, according to Maslow's hierarchy of needs.