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Question 4.18: A Diluted EPS Calculation Using the Treasury Stock Method fo...

A Diluted EPS Calculation Using the Treasury Stock Method for Options

Hihotech Company reported net income of $2.3 million for the year ended 30 June 2005 and had an average of 800,000 common shares outstanding. The company has outstanding 30,000 options with an exercise price of $35 and no other potentially dilutive securities. Over the year, the company’s market price has averaged $55 per share. Calculate the company’s basic and diluted EPS.

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