Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,000 million face amount, convertible into 60 million common shares The following additional information is available:

  • On September 1, 2021, Canaday sold 72 million additional shares of common stock.
  • Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canadays common stock was $20 per share during 2021.
  • Canaday's net income for the year ended December 31, 2021, was $2,366 million. The effective income tax rate was 25%.

Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Numerator / Denominator = Earnings per share
Basic / =
Diluted / =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Accounting

Authors: Ken Leo, John Hoggett, John Sweeting, Jennie Radford

8th Edition

0470819731, 978-0470819739

More Books

Students also viewed these Accounting questions

Question

It would have become a big deal.

Answered: 1 week ago