Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi Please i am having trouble solving this can you help me, Thank you 51. On December 31, 2019 Broccoli Film Company had 250 million

Hi Please i am having trouble solving this can you help me,

Thank you

image text in transcribed

51. On December 31, 2019 Broccoli Film Company had 250 million shares of common stock issued and outstanding. The following events occurred during 2020: a. b. January 31, 2020: Broccoli repurchased 15 million shares April 1, 2020: Broccoli issued 50 million shares May 31, 2020: Broccoli issued a 4% stock dividend September 30, 2020: Broccoli resold 6 million of its treasury shares Net income for the year was $300 million. Broccoli's income tax rate is 21.0% At December 31, 2020 there were 25 million incentive stock options outstanding. All options were fully vested in 2018 and could be exercised at any time through December 31, 2025. Their strike price was $30. Broccoli's common stock traded at an average price of $50 per share. In 2015, $85 million of 20-year, 5% bonds, convertible into 12.5 million common shares, were issued at face value. All of the bonds were outstanding as of December 31, 2020. Compute Broccoli's basic earnings per share for 2020. Compute Broccoli's diluted earnings per share for 2020.

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

College Accounting Chapters 1-13

Authors: John Price

14th Edition

007763991X, 9780077639914

More Books

Students also viewed these Accounting questions

Question

Discuss the pros and cons of having a high cigarette tax.

Answered: 1 week ago