Your company has 2,000 options outstanding and each can be exchanged for one share of common stock at an exercise price of $20.
The average market value for each share was $25 throughout the year. Calculate the incremental number of shares that will be used for the December 31,2019 diluted earnings per share calculation using the treasury stock method (ie how many shares will you post to the denominator in your calculation
The incremental number of shares that will be used for the December 31,2019 is 400 shares
Explanation:
To calculate the the incremental number of shares that will be used for the December 31,2019 first we have to calculate the Amount received from Options as follows:
Amount received from Options = Number of options * Exercise price
= 2,000 options * $20
= $40,000
Therefore, Value of options in current shares = Amount received from options / Average market value of shares
= $40,000 / 25
= 1,600 shares
Therefoe, Diluted shares = Stock options outstanding - Value of Options in Current shares
= 2,000 shares - 1,600 shares
= 400 shares
The incremental number of shares that will be used for the December 31,2019 is 400 shares
The analytic technique utilized after an adverse event occurs to prevent its recurrence is called Root cause analysis.
<h3>What are the root cause analysis five steps?</h3>
Root cause analysis is a technique for problem-solving used in science and engineering to determine the underlying reasons of errors or issues.
It is frequently utilized in areas like information technology operations, telecommunications, industrial process control, accident investigation, and the healthcare sector.
Realize the Issue: To start, you must decide what went wrong.
Gather a Good Amount of Information.
Determine the Related Causal Factors.
Create a conclusion.
Make any necessary adjustments.
The analytic technique utilized after an adverse event occurs to prevent its recurrence is called
Root cause analysis.
To learn more about the Root cause analysis, refer to the following link:
exactly!! i asked a question and one person responded with some link saying they put the answer on there. i think people just want points or something:
<span>If the changes need to be done immediately in order to benefit the health of the client, then IRB approval is not required. The IRB, which stands for Institutional Review Board, is a select group of people that review and regulate biomedical research in which human beings are involved. This group is regulated by the FDA.</span>
