Answer:
$1.40 per share
Explanation:
The computation of the diluted earning per share is shown below:
Diluted earning per share = Net income ÷ weighted number of shares
where,
Net income is $300,000
And, the weighted number of shares is
= 200,000 shares + (45,000 options - 45,000 options × $10 ÷ $15
= 200,000 shares + (45,000 options - 30,000 options)
= 200,000 shares + 15,000
= 215,000 shares
So, the diluted per share is
= $300,000 ÷ 215,000 shares
= $1.40 per share
