Page 33 - FINAL CFA I SLIDES JUNE 2019 DAY 7
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Session Unit 7:
24. Understanding Income Statements
Example 3: EPS with stock options, p.64
During 20X6, ZZZ reported net income of $115,600 and had 200,000 shares of common stock outstanding for the entire
year. ZZZ also had 1,000 shares of 10%, $100 par, preferred stock outstanding during 20X6. ZZZ has 10,000 stock options
(or warrants) outstanding the entire year. Each option allows its holder to purchase one share of common stock at $15
per share. The average market price of ZZZ’s common stock during 20X6 is $20 per share. Compute the diluted EPS.
tanties
