On December 31, 2020, Berclair Inc. had 250 million shares of common stock and 11 million...
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On December 31, 2020, Berclair Inc. had 250 million shares of common stock and 11 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 60 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $550 million. Also outstanding at December 31 were 54 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 54 million common shares at an exercise price of $50 per share. During 2021, the market price of the common shares averaged $75 per share. The options were exercised on September 1, 2021. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.) Numerator Denominator Earnings per Share %3D Basic Diluted %3D On December 31, 2020, Berclair Inc. had 250 million shares of common stock and 11 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 60 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $550 million. Also outstanding at December 31 were 54 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 54 million common shares at an exercise price of $50 per share. During 2021, the market price of the common shares averaged $75 per share. The options were exercised on September 1, 2021. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.) Numerator Denominator Earnings per Share %3D Basic Diluted %3D
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Answer rating: 100% (QA)
Answer Numerator Denominator Earnings per Share Basic 451 231 195 Diluted 451 243 186 Worki... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
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