had 420 million shares of common stock and 15 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 96 million shares of its common stock as treasury stock Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the
On December 31, 2020, Berclair Inc. had 420 million shares of common stock and 15 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 96 million shares of its common stock as treasury stock
Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the
year ended December 31, 2021, was $750 million.
Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2016. The
options were exercisable as of September 13, 2020, for 63 million common shares at an exercise price of $60 per share. During 2021,
the market price of the common shares averaged $70 per share.
The options were exercised on September 1, 2021.
Required:
Compute Berclair's 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.)
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