On January 1, 2021, Slater Company had outstanding 200 million shares of common stock and 20 million shares of 7.5% cumulative preferred stock (par $10).

On March 1, 2021, Slater sold and issued an additional 24 million shares of common stock. The company distributed a 10% common stock dividend on May 5. On November 1, six million shares were retired in keeping with the company’s long-term share repurchase plan.

Net income was $465 million.

• At year-end, there were incentive stock options outstanding for 12 million shares of common stock (adjusted for the stock dividend). The options were issued at January 1, 2020 and are exercisable one year from the date of grant. The exercise price was$25.

The market price of the common stock during the year had averaged $30.

• Also outstanding were$600 million of 10% bonds, convertible into 24 million common shares (adjusted for the stock dividend). The bonds had been issued in 2017 at face value.

Required:

Compute basic and diluted EPS for the year ended December 31,2021.

Answer rating: 100% (QA)

EPS Answer can be rounded as per question requirement rounded to 2 ... View the full answer