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The company issues 2,500 options that can be exchanged for ordinary shares. The fair price of...

The company issues 2,500 options that can be exchanged for ordinary shares. The fair price of shares is Rp1,000 per share and the exercise price of these options is Rp800 per share. In the diluted LPS calculation, the addition of the number of ordinary shares outstanding as a result of the option is ...
A. 500
B. 1000
C. 1500
D. 2500

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Answer #1

Addition as diluted shares :

Diluted shares = 2500 - (2500*800/1000) = 500 shares

So answer is a) 500

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