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D Company has 200,000 unexercised stock options outstanding. Each option entitles the holder buy 1...

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Question

Accounting

D Company has 200,000 unexercised stock options outstanding. Each option entitles the holder buy 1 share of D common stock at a price of $25 (exercise / strike price). The average market price for D common stock was $40 for the period. How many shares would be added to the denominator for D's Diluted EPS calculation for the stock options?

Group of answer choices

75,000

200,000

125,000

None, they are unexercised

Answer & Explanation Solved by verified expert
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