At January 1, 2016, Canaday Corporation had outstanding the following securities: 790 million common shares 45 million 4% cumulative preferred shares, $50 par 6% convertible bonds, $3,000 million face amount, convertible into 80 million common shares The following additional information is available: On September 1, 2016, Canaday sold 78 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 $1,552 million. The effective income tax rate was 40%.