At January 1, 2024, M. E. Gainor 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, 2024, M. E. Gainor sold 72 million additional shares of common stock. • Incentive stock options to purchase 40 million shares of common stock after July 1, 2023, at $14 per share, were outstanding at the beginning and end of 2024. The average market price of Gainor's common stock was $20 per share during 2024. • Gainor's net income for the year ended December 31, 2024, 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, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator Denominator = Earnings per share

At January 1, 2024, M. E. Gainor 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, 2024, M. E. Gainor sold 72 million additional shares of common stock. • Incentive stock options to purchase 40 million shares of common stock after July 1, 2023, at $14 per share, were outstanding at the beginning and end of 2024. The average market price of Gainor's common stock was $20 per share during 2024. • Gainor's net income for the year ended December 31, 2024, 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, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator Denominator = Earnings per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nancy Fan Company had 100,000 shares of common stock outstanding on January 1, 2024. On September 30, 2024, Nancy Fan sold 42,000 shares of common stock for cash. Nancy Fan also had 7,000 shares of convertible preferred stock outstanding throughout 2024. The preferred stock is $100 par, 7%, and is convertible into 3 shares of common for each share of preferred. Nancy Fan also had 440, 9%, convertible bonds outstanding throughout 2024. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2024 was $340,000 with a 40% tax rate. Common shareholders received $1.40 per share dividends after preferred dividends were paid in 2024. Required: Compute basic and diluted earnings per share for 2024. Note: Round your answers to 2 decimal places.
True or False?
On December 31, 2023, Berclair Incorporated had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock Issued and outstanding. • On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. • Berclair Issued a 5% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. • Net Income for the year ended December 31, 2024, was $150 million. • Also outstanding at December 31 were 30 million Incentive stock options granted to key executives on September 13, 2019. The options were exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. During 2024, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock…
At January 1, 2021, Canaday Corporation had outstanding the following securities:700 million common shares20 million 8% cumulative preferred shares, $50 par6.4% 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 75 million additional shares of common stock. Incentive stock options to purchase 50 million shares of common stock after July 1, 2020, at $10 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 $2,370 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.
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Current Attempt in Progress At December 31, 2024, Wildhorse Company had 800000 shares of common stock outstanding. On October 1, 2025, an additional 160000 shares of common stock were issued. In addition, Wildhorse had $10550000 of 5% convertible bonds outstanding at December 31, 2024, which are convertible into 366000 shares of common stock. No bonds were converted into common stock in 2025. The net income for the year ended December 31, 2025, was $2513090. Assuming an income tax rate of 30%, diluted earnings per share for the year ended December 31, 2025 is O $2.52. O $3.43. O $2.08. O $2.39.
Windsor Corporation issued 119,000 shares of $19 par value, cumulative, 9% preferred stock on January 1, 2021, for $2,550,000. In December 2023, Windsor declared its first dividend of $750,000. (a). (b) Your answer is incorrect. If the preferred stock is not cumulative, how much of the $750,000 would be paid to common stockholders? Common Stock Dividends $
On December 31, 2023, Berclair Incorporated had 460 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. • Berclair issued a 5% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. • Net income for the year ended December 31, 2024, was $700 million. • The income tax rate is 25%. • Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019. ● The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. During 2024, the market price of the common shares averaged $70 per share. • In 2020, $50.0 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…
On December 31, 2023, Berclair Incorporated had 560 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. • Berclair issued a 5% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. • Net income for the year ended December 31, 2024, was $950 million. • The income tax rate is 25%. • Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019. • The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. . During 2024, the market price of the common shares averaged $70 per share. • In 2020, $50.0 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…
Question: On December 31, 2023, Berclair Incorporated had 280 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. . On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. . . Berclair issued a 5% common stock dividend on July 1, 2024. Four million treasury shares were sold on October 1. . • Net income for the year ended December 31, 2024, was $250 million. The income tax rate is 25%. • • . Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019. The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. During 2024, the market price of the common shares averaged $70 per share. • In 2020, $50.0 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…