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Which of the following statements regarding the treasury stock method of computing diluted shares is least accurate? The treasury stock method: A. is used when the exercise price of the option is less than the average market price. B. increases the total number of shares by less than the number that the exercise of the options would create. C. assumes that the hypothetical funds received by the company from the exercise of the options are used to sell shares of the company’s common stock in the market at the average market price. |