Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shutterpics reported net income of $453 million in 2021 (tax rate 25%). The Company's capital structure and related events include the following: As of the

image text in transcribed

Shutterpics reported net income of $453 million in 2021 (tax rate 25%). The Company's capital structure and related events include the following: As of the beginning of 2021, 96 million common shares were outstanding and the average market price of the common shares during 2021 was $18 per share. On May 1, 2021, 6 million new shares of common stock were sold. On June 1, 2021, a 10% stock dividend was distributed. On October 1, 2021, 6 million shares were reacquired as treasury stock. Shutterpics, for the full year, also had 12 million shares of 8%, $5 par preferred shares (nonconvertible) outstanding. Certain key executives were granted stock options granted in 2016, exercisable after 2020 for 15 million common shares at an exercise price of $15 per share. The Company also held convertible bonds which were 7%, $200 million face amount issued in 2019, convertible into 12 million common shares. Lastly, there were Warrants granted in 2020, exercisable for 2 million common shares at an exercise price of $19 per share. Required: Compute Shutterpics basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.) 1 Denominator Numerator $ Earnings per Share Basic / = S Diluted S / $

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

Employment, Hours, And Earnings 2010 States And Areas

Authors: Sarah E. Baltic

5th Edition

1598884190, 9781598884197

More Books

Students also viewed these Accounting questions

Question

How do I feel just after I give in to my bad habit?

Answered: 1 week ago