In question 7- while calculating diluted EPS of RUF- number of shares should be (30+33.33)million- whereas solution shows number of shares as 33.33 million only.
in question itself it is mentioned that – RUF
has 30 million shares outstanding and options outstanding for an additional
33,333,333 shares.
Please clarify.
there is an error. it should be 333333 stock options outstanding.
i too had posted a similar question and the only possible answer for this could be…
it is an error and as per the question we should use 63.33 mn shares.