Isadore Bell Company granted 8 million of its no par common shares to executives
ID: 2517726 • Letter: I
Question
Isadore Bell Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2018, the grant date. When calculating diluted EPS at December 31, 2019, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2019?
8 million
6 million
2 million
2.67 million
a.8 million
b.6 million
c.2 million
d,2.67 million
Explanation / Answer
The net increase in the denominator of the EPS Fraction will be 8 million as the impact is to be given for full 12 months of a year.
a) 8 million.
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