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Question 3 (7 marks) Wilcorp Ltd. reported a total loss of $760,000. There are 556,000...

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Question 3 (7 marks) Wilcorp Ltd. reported a total loss of $760,000. There are 556,000 shares outstanding. The company has outstanding stock options for 106,000 common shares at $16 per share. The average common share price was $25 during the period. Assume that Hominem Inc. had a loss on discontinued operations of $1,796,000 (after tax). Required: a) Calculate the number of shares that would be added for the dilution on exercise of the options. b) Calculate the basic EPS. c) Explain the concept of diluted EPS, as it pertains to stock options. Comment specifically on whether Wilcorp's stock options should be included in the calculation of their diluted EPS

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