Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE HELP URGENT On December 31, 2017, Berclair Inc. had 460 million shares of common stock and 4 million shares of 9%,$100 par value cumulative
PLEASE HELP URGENT
On December 31, 2017, Berclair Inc. had 460 million shares of common stock and 4 million shares of 9%,$100 par value cumulative referred stock issued and outstanding. On March 1, 2018, Berclair purchased 24 million shares of its common stock as treasury stock. 3erclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the rear ended December 31,2018 , was $700 million. The income tax rate is 40%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2013. The options are exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market rice of the common shares averaged $70 per share. n 2014, $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 0,000,000 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