Numerator, Denominator Earnings per Share %3D %3D %3D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On December 31, 2020, Berclair Inc. had 420 million shares of common stock and 7 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 36 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2021. Six million treasury shares were sold on October 1. Net income for the
year ended December 31, 2021, was $700 million.
Required:
Compute Berclair's 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).)
Numerator,
Denominator
Earnings per Share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d8d4208-64ec-4140-9b10-610fa2467ecc%2Fcf237965-22bb-46fc-996b-1afeae547fcb%2Fbean4bi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 31, 2020, Berclair Inc. had 420 million shares of common stock and 7 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 36 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2021. Six million treasury shares were sold on October 1. Net income for the
year ended December 31, 2021, was $700 million.
Required:
Compute Berclair's 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).)
Numerator,
Denominator
Earnings per Share
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