Dulce Corporation Had 200,000 Shares of Common Stock Outstanding During

Multiple Choice

Dulce Corporation had 200,000 shares of common stock outstanding during the current year. At the beginning of the year, options for 10,000 shares of common stock were granted with an exercise price of $20. The average market price of the common stock during the year was $25. Net income was $4 million. What is diluted EPS?

A) $20.00.
B) $19.80.
C) $19.23.
D) $18.18.*(10,000 $20) /$25 = 8,000