Question: I have figured out the numerators, but I cannot figure out the denominators, and all the answers I have looked at are incorrect for the
I have figured out the numerators, but I cannot figure out the denominators, and all the answers I have looked at are incorrect for the denominators. Please help.
The shareholders' equity of Proactive Solutions, Incorporated, included the following at December : Common stock, $ par Paidin capitalexcess of par on common stock cumulative convertible preferred stock, $ par value Paidin capitalexcess of par on preferred stock Retained earnings Additional Information: Proactive had million shares of preferred stock authorized, of which million were outstanding. All million shares outstanding were issued in for $ a share. The preferred stock is convertible into common stock on a twoforone basis until December after which the preferred stock no longer is convertible. None of the preferred stock has been converted into common stock at December There were no dividends in arrears. Of the million common shares authorized, there were million shares outstanding on January Proactive also sold million shares at the beginning of September at a price of $ a share. The company has an employee stock option plan in which certain key employees and officers may purchase shares of common stock at the market price at the date of the option grant. All options are exercisable beginning one year after the date of the grant and expire if not exercised within five years of the grant date. On January options for million shares were outstanding at $ a share. Options for million shares were exercised at the end of June No options expired during Additional options for million shares were granted at $ a share on July The average price of the common stock was $ during the entire year and $ during the second half of the year. The only changes in the shareholders' equity for were those described above, net income of $ million, and cash dividends paid. Required: to Calculate basic and the diluted earnings per share. Note: Round the intermediate calculations to one decimal place. Enter your answers in millions rounded to decimal places ie should be entered as The shareholders' equity of Proactive Solutions, Incorporated, Included the following at December : Common stock, $ par PaldIn capitalexcess of par on common stock cumulative convertlble preferred stock. $ par value PaidIn capitalexcess of par on preferred stock Retained earnings Additional Information: Proactive had million shares of preferred stock authorized, of which million were outstanding. All million shares outstanding were issued in for $ a share. The preferred stock is convertible Into common stock on a twoforone basis until December after which the preferred stock no longer is convertible. None of the preferred stock has been converted into common stock at December There were no dividends in arrears. Of the million common shares authorized, there were million shares outstanding on January Proactive also sold million shares at the beginning of September at a price of $ a share. The company has an employee stock option plan In which certain key employees and officers may purchase shares of common stock at the market price at the date of the optlon grant. All options are exercisable beginning one year after the date of the grant and expire If not exercised within five years of the grant date. On January optlons for million shares were outstanding at $ a share. Options for million shares were exercised at the end of June No options expired during Additional options for million shares were granted at $ a share on July The average price of the common stock was $ during the entire year and $ during the second half of the year. The only changes in the shareholders' equity for were those described above, net income of $ million, and cash dividends pald. Required: to Calculate basic and the diluted earnings per share. Note: Round the intermediate calculations to one decimal place. Enter your answers in millions rounded to decimal places Le should be entered as Answer is complete but not entirely correct.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
