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 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 (l.e., 10,000,000 should be entered as 10).
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 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 (l.e., 10,000,000 should be entered as 10).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject :- Account
Transcribed Image Text: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 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 (l.e., 10,000,000
should be entered as 10).
Basic
Diluted
Numerator
$
$
Answer is complete but not entirely correct.
Denominator
Earnings per Share
1.66
1.68
923
953-
555
567
m
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