单选题 A software company pays a substantial amount of its compensation expense in the form of stock options. Without these options the company feels it will not be able to keep its key engineers. When adjusting for stock options, the EPS calculation is affected only when the stock price: A. is less than the exercise price. B. is greater than the exercise price. C. is greater than the stock price at the end of the previous year.
【正确答案】 B
【答案解析】When the exercise price is below the market price of the stock, the options will be dilutive. The exercise of the options will not generate enough cash to buy the stock, so additional shares would have to be issued, thus reducing earnings per share.