Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employmentis terminated within three years. The common shares have a market price of $5 per share on January 1, 2017, thegrant date of the restricted stock award. When calculating diluted EPS at December 31, 2018, what will be thenet increase in the denominator of the EPS fraction if the market price of the common shares averaged $5 pershare during 2018?

Question

Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employment
is terminated within three years. The common shares have a market price of $5 per share on January 1, 2017, the
grant date of the restricted stock award. When calculating diluted EPS at December 31, 2018, what will be the
net increase in the denominator of the EPS fraction if the market price of the common shares averaged $5 per
share during 2018?

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