Question
At January 1, 2016, Canaday Corporation had outstanding the following securities: 800 million common shares 50 million 5% cumulative preferred shares, $50 par 6% convertible
At January 1, 2016, Canaday Corporation had outstanding the following securities: 800 million common shares 50 million 5% cumulative preferred shares, $50 par 6% convertible bonds, $3,500 million face amount, convertible into 90 million common shares The following additional information is available: On September 1, 2016, Canaday sold 75 million additional shares of common stock. Incentive stock options to purchase 60 million shares of common stock after July 1, 2015, at $12 per share were outstanding at the beginning and end of 2016. The average market price of Canadays common stock was $18 per share during 2016. Canaday's net income for the year ended December 31, 2016, was $1,556 million. The effective income tax rate was 40%. 1. & 2. Calculate basic and diluted earnings per common share for the year ended December 31, 2016.
I have the basic done, but I cannot figure out the diluted earnings. I can't get the numerator quite right. Thank you!
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