这个回购股份不需要减NI吗。。。

问题如下：

Question

The following relates to a company’s common equity over the course of the year:

If the company’s net income for the year is $5,000,000, its diluted EPS is closest to:

选项：

A.$2.17. B.$2.22. C.$2.20.

解释：

Solution

B is correct. First, determine the incremental shares issued from stock option exercise (treasury stock method):

Diluted EPS = Net income−Preferred dividendsWeighted average number of shares$\frac{\text{Net income}-\text{Preferred dividends}}{\text{Weighted average number of shares}}$

= $5,000,000−$02,250,000 shares$\frac{\$5,000,000-\$0}{2,250,000\text{ shares}}$

= $2.22/share

A is incorrect. It includes the options at full value not using the Treasury stock method and forgets to prorate the others issued and repurchased

$5,000,000/(2,000,000 +100,000 + 300,000 – 100,000) = 2.17

C is incorrect. It does not prorate the new shares issued or repurchased for the length of time outstanding: (2,000 + 75 + 300 – 100) = 2,275; 5,000/2,275 = 2.20.

Or it ignores the buyback: (2,000 + 100 + 225 – 50) = 2,275; 5,000/2,275 = 2.198 = 2.20.