Problem 5 and 6

..|I Metro by TMobile 21* a 10:13 PM 4 [1. AA 9 ezto.mheducation.com ('J 6. Award: 16.70 points At January 1, 2021, Canaday Corporation had outstanding the following securities: 680 million common shares 20 million 8% cumulative preferred Shares. $50 par 6.4% convertible bonds, $2,500 million face amount, convertible into 90 million common shares The following additional information is available: 0 On September 1, 2021, Canaday sold 75 million additional shares of common stock. . Incentive stock options to purchase 60 million shares of common stock after July 1, 2020, at $12 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $18 per shar during 2021. . Canaday's net income for the year ended December 31, 2021, was $1,662 million. The effective income tax rate was 25%. Required: 1. 8: 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).) References Worksheet Learning Objective: 1905 Learning Objective; 19708 Describe new options. rights. Describe what is meant by and warrants are incorporated in the calculation of EPS. the weightedeaverage number of common shares. Difficulty: 2 Medium Learning Objective: 1905 Learning Objective; 19709 Describe how convertible Differentiate the effect on securities are incorporated in the calculation of EPS. EPS of the sale of new