On December 31, 2010, Berclair Inc. had 200 million shares of common stock and 3 million shares
Question:
On December 31, 2010, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2011. On March 1, 2011. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2011, was $150 million.
Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2006. The options are exercisable as of September 13, 2010, for 30 million common shares at an exercise price of $56 per share. During 2011, the market price of the common shares averaged $70 per share.
The options were exercised on September 1, 2011.
Required:
Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2011.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Amounts in millions except per share amount Basic EPS Diluted EPS Purchase ...View the full answer
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
