hard · Financial Accounting

A company has Net Income of $1,000,000 and 100,000 weighted-average common shares outstanding. It also has 10,000 stock options with a strike price of $40, while the average market price of the stock was $50.

What are the incremental shares added for the Diluted EPS calculation?

  1. 10,000
  2. 2,500
  3. 2,000
  4. 8,000

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