Diluted EPS - Treasury Stock Method

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There are 10,000 options. 10,000 - 6,667 = 3,333 which is the incremental number of shares issued.

OK, so is 10,000 options equal to 10,000 shares?


The faster way to calculate the options (warrents, rights, etc) is taking the Average Price-Exercise Price/Average Price x the number of options to derive the amount of shares to be added in the denominator.

In this case AP =$15 EX price =$10 so 15-10/15 =.3333 X 10,000 Options = 3333.33 shares