1. An analyst has gathered the following information about a company:
·50,000 common shares outstanding from the beginning of the year.
·Warrants outstanding all year on 50,000 shares, exercisable at $20 per share.
·Stock is selling at year end for $25.
·The average price of the company's stock for the year was $15.
·How many shares should be used in calculating the company's diluted EPS?