Question: Assume Plaza Corporation has compensatory share options for employees to
Assume Plaza Corporation has compensatory share options for employees to purchase 2,000 common shares at $14 per share outstanding the entire year, and that the average market price for the common stock during the year was $20 per share. The unrecognized compensation cost (net of tax) related to the share options is $1 per share. What is the assumed increment in the denominator for computing Plaza Corporation’s diluted earnings per share?
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