The following information was for 20x2: $500 million Net Income Common Stock, $1 par 1/1 shares...

 

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The following information was for 20x2: $500 million Net Income Common Stock, $1 par 1/1 shares outstanding 2/1 retired for cash 7/23 2-for-1 split 9/1 sold for cash Preferred Stock, 10%, S60 par, cumulative, non-convertible Preferred Stock, 8%, $50 part, cumulative, convertible into 4 million shares of common stock Incentive Stock Options outstanding, fully vested, for 4 million shares of common stock, exercisable at $15 per share Bonds Payable, 12.5%, convertible into 20 million shares of common stock 150 million shares 24 million shares 18 million shares $70 million $100 million $200 million Additional data: 1. The average market price of the common stock was $20. 2. The convertible preferred stock and the bohds payable had been issued at par in 20xx. 3. The tax rate was 40% Required: Calculate basic and diluted earnings per share for the year ended December 31, 20x2. The following information was for 20x2: $500 million Net Income Common Stock, $1 par 1/1 shares outstanding 2/1 retired for cash 7/23 2-for-1 split 9/1 sold for cash Preferred Stock, 10%, S60 par, cumulative, non-convertible Preferred Stock, 8%, $50 part, cumulative, convertible into 4 million shares of common stock Incentive Stock Options outstanding, fully vested, for 4 million shares of common stock, exercisable at $15 per share Bonds Payable, 12.5%, convertible into 20 million shares of common stock 150 million shares 24 million shares 18 million shares $70 million $100 million $200 million Additional data: 1. The average market price of the common stock was $20. 2. The convertible preferred stock and the bohds payable had been issued at par in 20xx. 3. The tax rate was 40% Required: Calculate basic and diluted earnings per share for the year ended December 31, 20x2.

Answer rating: 100% (QA)

Calculate basic earnings per share Basic earnings per share can be calculated by using the formula ... View the full answer