Response to the following problem:
Assume Plaza Corporation has compensatory share options for employees to purchase 2,000 common shares at $14 per share outstanding the entire year, and that the average market price for the common stock during the year was $20 per share. The unrecognized compensation cost (net of tax) related to the share options is $1 per share.
What is the assumed increment in the denominator for computing Plaza Corporation's diluted earnings per share?