The Following Information Applies to the Next Three Questions

question 25

Multiple Choice

The following information applies to the next three questions:
Tangier Corporation currently has stock rights outstanding for 2,000 common shares.The exercise price of these shares is $25.The options were issued in January of 2012.The average market price of the related common stock during the year 2012 was $30.The average market price of the related common stock during 2013 was $26 and during 2014 was $21.The company's fiscal year ends on December 31 of each year.
-How should these stock rights be treated in the earnings per share calculation for the year ending December 31,2013?

• A) The stock options are antidilutive and should not be included either in basic or diluted earnings per share.
• B) The stock options are dilutive and should be included in diluted earnings per share in the amount of 77 shares.
• C) The stock options are dilutive and should be included in diluted earnings per share in the amount of 2,000 shares.
• D) The stock options are dilutive and should be included in diluted earnings per share in the amount of 333 shares.

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Definitions:

Standard Of Living

The degree of prosperity, convenience, physical possessions, and essential needs accessible to a specific social economic group or region.

Inward-Oriented Policies

Economic strategies focusing on protecting domestic industries from foreign competition through tariffs and import quotas.

Outward-Oriented Policies

Economic policies aimed at promoting international trade by reducing trade barriers and embracing globalization to stimulate economic growth.

Growth

The increase in the economic output and productivity of a country, measured by its Gross Domestic Product (GDP) over time.