单选题 The Widget Company had net income of $1 million for the period. There were 1 million shares of Widget common stock outstanding for the entire period. If there are 100000 options outstanding with an exercise price of $ 40, what is the diluted earnings per share for Widget common stock if the average price per share over the period was $ 50?

A、

A. $0.98.
B、

B. $0.99.
C、

C. $1.00.

【正确答案】 A

【答案解析】Use the Treasury stock method Proceeds = 100000×$ 40 = $ 4000000 Shares assumed purchased with proceeds = $ 4000000/$ 50 = 80000 shares Potential dilution = 100000 80000 = 20000 shares Basic EPS = $1/share Diluted EPS = $1000000/1020000 = $ 0.98/share