a. What is the treasury stock method and when is it used?
b. Briefly, describe the application of the treasury stock method.
c. What does the treasury stock method assume about the exercise date? What is the exception to the rule with respect to the assumed exercise date? What alternative procedure is employed in this instance?
d. How do you calculation Earnings Per Share (EPS)? Provide examples of actual companies and their respective EPSs per share?