Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with answering the following problem. I keep getting the incorrect answer, as seen in screenshot below. On December 31, 2023, Berclair Incorporated
I need help with answering the following problem. I keep getting the incorrect answer, as seen in screenshot below.
On December 31, 2023, Berclair Incorporated had 300 million shares of common stock and 9 million shares of 9%,$100 par value cumulative preferred stock issued and outstanding. - On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock. - Berclair issued a 5\% common stock dividend on July 1, 2024. - Four million treasury shares were sold on October 1. - Net income for the year ended December 31, 2024, was $450 million. - Also outstanding at December 31 were 45 million incentive stock options granted to key executives on September 13, 2019. - The options were exercisable as of September 13, 2023, for 45 million common shares at an exercise price of $50 per share. - During 2024, the market price of the common shares averaged $75 per share. - The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started