At January 1, 2021, Canaday Corporation had outstanding the following securities: 660 million common shares 20 million 6% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,500 million face amount, convertible into 70 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday’s common stock was $20 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $2,154 million. The effective income tax rate was 25%. Required: 1. & 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).)
At January 1, 2021, Canaday Corporation had outstanding the following securities: 660 million common shares 20 million 6% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,500 million face amount, convertible into 70 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday’s common stock was $20 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $2,154 million. The effective income tax rate was 25%. Required: 1. & 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).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At January 1, 2021, Canaday Corporation had outstanding the following securities:
660 million common shares
20 million 6% cumulative
6.4% convertible bonds, $3,500 million face amount, convertible into 70 million common shares
The following additional information is available:
- On September 1, 2021, Canaday sold 72 million additional shares of common stock.
- Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday’s common stock was $20 per share during 2021.
- Canaday's net income for the year ended December 31, 2021, was $2,154 million. The effective income tax rate was 25%.
Required:
1. & 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).)
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