On December 31, 2023, Berclair Incorporated had 400 million shares of common stock and 7 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 60 million shares of its common stock as treasury stock. • Berclair issued a 4% 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 $350 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 $35 per share During 2024, the market price of the common shares averaged $70 per share. . • The options were exercised on September 1, 2024. 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 dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Basic Diluted Numerator S Answer is complete but not entirely correct. Earnings per Share 0.84 0.80 4 Denominator 305- 305 365 380 - $ s
On December 31, 2023, Berclair Incorporated had 400 million shares of common stock and 7 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 60 million shares of its common stock as treasury stock. • Berclair issued a 4% 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 $350 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 $35 per share During 2024, the market price of the common shares averaged $70 per share. . • The options were exercised on September 1, 2024. 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 dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Basic Diluted Numerator S Answer is complete but not entirely correct. Earnings per Share 0.84 0.80 4 Denominator 305- 305 365 380 - $ s
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:On December 31, 2023, Berclair Incorporated had 400 million shares of common stock and 7 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
. On March 1, 2024, Berclair purchased 60 million shares of its common stock as treasury stock.
• Berclair issued a 4% 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 $350 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 $35 per share.
.
During 2024, the market price of the common shares averaged $70 per share.
• The options were exercised on September 1, 2024.
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 dividend.)
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Basic
Diluted
Numerator
S
S
Answer is complete but not entirely correct.
Earnings per Share
084
0.80
4 Denominator
305 -
305 X
365 * =
380 *=
$
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education