Telex Company had 30,000 shares of common stock outstanding on January 1, 2022. On April 1,...

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Telex Company had 30,000 shares of common stock outstanding on January 1, 2022. On April 1, the company issued 15,000 shares of common stock. The company had outstanding stock options for 5,000 shares exercisable at $13 that had not been exercised by its executives. The end-of-year market price of common stock was $11 while the average price for the year was $12. What weighted average number of shares of stock should be used in computing diluted earnings per share for 2022? Telex Company had 30,000 shares of common stock outstanding on January 1, 2022. On April 1, the company issued 15,000 shares of common stock. The company had outstanding stock options for 5,000 shares exercisable at $13 that had not been exercised by its executives. The end-of-year market price of common stock was $11 while the average price for the year was $12. What weighted average number of shares of stock should be used in computing diluted earnings per share for 2022?

Answer rating: 100% (QA)

SOLUTION To compute diluted earnings per share EPS we need to consider the potential impact of dilutive securities such as stock options or convertibl... View the full answer