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n additional shares of common stock. shares of common stock after July 1, 202 harket price of Canaday's common stock ember 31, 2021, was $2,378 million. The e

n additional shares of common stock. shares of common stock after July 1, 202 harket price of Canaday's common stock ember 31, 2021, was $2,378 million. The e

FINANCIAL ACCOUNTING
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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At January 1, 2021, Canaday Corporation had outstanding the following securities: 720 million common shares 20 million 8% cumulative preferred shares, $50 par 6.4% convertible bonds, $4,500 million face amount, convertible into 90 million common shares The following additional information is available: • On September 1, 2021, Canaday sold 81 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 $2,378 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).) Numerator Denominator Earnings per share Basic Diluted
Transcribed Image Text:At January 1, 2021, Canaday Corporation had outstanding the following securities: 720 million common shares 20 million 8% cumulative preferred shares, $50 par 6.4% convertible bonds, $4,500 million face amount, convertible into 90 million common shares The following additional information is available: • On September 1, 2021, Canaday sold 81 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 $2,378 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).) Numerator Denominator Earnings per share Basic Diluted
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