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QUESTION 1

On 1/1/10, ABC had 2,600 shares outstanding. On 2/1/10, options were exercised which resulted in an additional 400 shares being issued. On 5/1/10, there was a 10% stock dividend. On 9/1/10, ABC issued 1,200 additional shares. On 11/1/10, ABC purchased 400 shares of treasury stock. On 12/1/10, ABC had a 3-for-1 stock split. How many shares did ABC have outstanding at 12/31/10?

		12,100 shares
		12,200 shares
		12,300 shares
		12,400 shares

QUESTION 2

ABC has 5,000 options outstanding. Each option gives the option holder the option to buy one share of stock at $8 per share. Assume the market price per share of stock is $10. To calculate diluted EPS, ABC uses the treasury stock method. For the above scenario, the options would be considered:

		Dilutive
		Antidilutive
		Liberal
		Conservative

QUESTION 3

On 1/1/10, ABC had 2,600 shares outstanding. On 2/1/10, options were exercised which resulted in an additional 400 shares being issued. On 5/1/10, there was a 10% stock dividend. On 9/1/10, ABC issued 1,200 additional shares. On 11/1/10, ABC purchased 400 shares of treasury stock. On 12/1/10, ABC had a 3-for-1 stock split. How many weighted shares did ABC have outstanding at 12/31/10?

		10,790 shares
		10,800 shares
		10,810 shares
		10,820 shares

QUESTION 4

ABC has 5,000 options outstanding. Each option gives the option holder the option to buy one share of stock at $8 per share. Assume the market price per share of stock is $10. To calculate diluted EPS, ABC uses the treasury stock method. For the above scenario, how many shares would increase for ABC when calculating diluted EPS? In other words, how much would the denominator of the EPS equation increase?

		500 shares
		1,000 shares
		1,500 shares
		2,000 shares

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