Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help On December 31, 2020, Berclair Inc. had 420 million shares of common stock and 15 million shares of 9%, $100 par value cumulative

please help image text in transcribed
On December 31, 2020, Berclair Inc. had 420 million shares of common stock and 15 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 96 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net Income for the year ended December 31, 2021, was $750 million. Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 63 million common shares at an exercise price of $60 per share. During 2021 the market price of the common sharesaveraged $70 per share. The options were exercised on September 1, 2021 Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.) Denominator - Earnings per Share Numerator $ 6,150 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

More Books

Students also viewed these Accounting questions