Carolina Company has options for 100,000 shares outstanding that may be exercised at the discretion of the option holder no earlier than June 30, 2003. The exercise price is $40 per share. The market price of Carolina shares was $30 on December 31, 2001 and was priced at an average of $32 during 2001.
Carolina’s earnings per share disclosures for 2001 should:
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A) |
not include the options because they are antidilutive. |
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B) |
include the options because they could dilute earnings. |
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C) |
not include the options because they cannot be exercised until June 30, 2003. |
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D) |
include the options because the shares declined in price during 2001. | A
Only dilutive securities are included in the earnings per share (EPS) calculation. Because the options may only be exercised at $40 per share, and the market price is in the low 30’s, exercise would be antidilutive. | 
发表于 2006-4-27 16:32
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