Use the Following to Answer Questions

Essay

Use the following to answer questions
In its 2016 Annual Report to shareholders,V Co.had the following disclosure note about its EPS:
NOTE 9 - EARNINGS PER SHARE:
The following represents the reconciliation from basic earnings per share to diluted earnings per share.Options to purchase 8.3 million and 9.7 million shares of common stock were outstanding at May 31,2016 and May 31,2015,respectively,but were not included in the computation of diluted earnings per share because the options' exercise prices were greater than the average market price of the common shares and,therefore,the effect would be antidilutive.No such antidilutive options were outstanding at May 31,2014.
-At the end of 2016,what is the maximum number of shares that could possibly be issued if all stock options and awards are exercised? Explain why V Co.used only 3.3 million in its computation for 2016.