DEPS is net income available to common shareholders divided by the number of common shares outstanding after adjustment for all dilutive securities that could possibly be issued. DEPS is always equal to or less than BEPS. In this problem, the difference between BEPS and DEPS is the price used in the assumed treasury stock purchase. Under APB Opinion 15, the purchase of treasury stock from the hypothetical proceeds of the exercise of the 44,000 rights is presumed to be at the year-end market price, if higher than the average market price for the year. Thus, the $264,000 (44,000 shares × $6) available for treasury stock purchases will buy only 8,800 shares at the year-end price of $30 per share. Consequently, because 8,800 is 20% of the actual shares outstanding, no hypothetical proceeds must be used to reduce debt or purchase securities, and no numerator adjustment of net income is needed. The denominator will consist of the 44,000 actual shares assumed to be outstanding all year, plus 17,600 additional shares [(44,000 new shares – 8,800 treasury shares) × (6/12)]. The weighted average denominator of 61,600 shares is divided into the $229,680 of net income to give DEPS of $3.73.