On December $31,2023,$ Berclair Incorporated had $200$ million shares of common stock and $3$ million shares of $9\%,$ $$100$ par value cumulative preferred stock issued and outstanding.

On March $1,2024,$ Berclair purchased $24$ million shares of its common stock as treasury stock.

Berclair issued a $5\%$ common stock dividend on July $1,2024.$

Four million treasury shares were sold on October $1.$

Net income for the year ended December $31,2024,$ was $$150$ million.

The income tax rate is $25\%.$

Also outstanding at December $31$ were incentive stock options granted to key executives on September $13,2019.$

The options are exercisable as of September $13,2023,$ for $30$ million common shares at an exercise price of $$56$ per share.

During $2024,$ the market price of the common shares averaged $$70$ per share.

In $2020,$ $$50$ million of $8\%$ bonds, convertible into $6$ million common shares, were issued at face value.

Required:

Compute Berclair's basic and diluted earnings per share for the year ended December $31,2024.($Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.$)$

Note: Do not round intermediate calculations. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

$\backslash$table$[[,$Numerator,$,\backslash$table$[[$Denominator$],[190]],=,$Earnings per Share$],[$Basic$,$$$,123,1,$$$,0\mathrm{.}65],[$Diluted$,$$$$,0\mathrm{.}62]]$

Explanation

$($amounts in millions, except per share amount$)$

Basic EPS

shares $at$ treasury shares new shares

January $1$

stock dividend

adjustment

${?}_u$arr

${?}^{**}9\%$$$1003$ million shares $=$$$27$ million preferred dividends

Can You tell me why the # of vesting period is $10$ and $3?$ I need it now. Please give me accurate explanations. Thank you.