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