Question
At January 1, 2016, Canaday Corporation had outstanding the following securities: 730 million common shares 50 million 5% cumulative preferred shares, $50 par 6% convertible
At January 1, 2016, Canaday Corporation had outstanding the following securities: |
730 million common shares | |
50 million 5% cumulative preferred shares, $50 par | |
6% convertible bonds, $2,000 million face amount, convertible into 60 million common shares | |
The following additional information is available: |
On September 1, 2016, Canaday sold 84 million additional shares of common stock. | |
Incentive stock options to purchase 50 million shares of common stock after July 1, 2015, at $10 per share were outstanding at the beginning and end of 2016. The average market price of Canadays common stock was $25 per share during 2016. | |
Canaday's net income for the year ended December 31, 2016, was $1,528 million. The effective income tax rate was 40%. | |
Required: |
1. & 2. | Calculate basic and diluted earnings per common share for the year ended December 31, 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) |
2
Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2016: |
Common shares outstanding throughout the year | 100 | million | |
Convertible preferred shares (convertible into 30 million shares of common) | 65 | million | |
Convertible 10% bonds (convertible into 21.5 million shares of common) | $ | 2,600 | million |
Henderson-Niles net income for the year ended December 31, 2016, is $920 million. The income tax rate is 40%. Henderson-Niles paid dividends of $3 per share on its preferred stock during 2016. |
Required: |
Compute basic and diluted earnings per share for the year ended December 31, 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) |
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