Homework Help is Here – Start Your Trial Now!
Business
Finance
Shutterpics reported net income of $453 million in 2021 (tax rate 25%). The Company's capital structure and related events include the following: As of the beginning of 2021, 96 million common shares were outstanding and the average market price of the common shares during 2021 was $18 per share. On May 1, 2021, 6 million new shares of common stock were sold. On June 1, 2021, a 10% stock dividend was distributed. On October 1, 2021, 6 million shares were reacquired as treasury stock. Shutterpics, for the full year, also had 12 million shares of 8%, $5 par preferred shares (nonconvertible) outstanding. Certain key executives were granted stock options granted in 2016, exercisable after 2020 for 15 million common shares at an exercise price of $15 per share. The Company also held convertible bonds which were 7%, $200 million face amount issued in 2019, convertible into 12 million common shares. Lastly, there were Warrants granted in 2020, exercisable for 2 million common shares at an exercise price of $19 per share. Required: Compute Shutterpics 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.) Basic Diluted Numerator 1 1 1 S S Denominator = Earnings per Share = = $ $

Shutterpics reported net income of $453 million in 2021 (tax rate 25%). The Company's capital structure and related events include the following: As of the beginning of 2021, 96 million common shares were outstanding and the average market price of the common shares during 2021 was $18 per share. On May 1, 2021, 6 million new shares of common stock were sold. On June 1, 2021, a 10% stock dividend was distributed. On October 1, 2021, 6 million shares were reacquired as treasury stock. Shutterpics, for the full year, also had 12 million shares of 8%, $5 par preferred shares (nonconvertible) outstanding. Certain key executives were granted stock options granted in 2016, exercisable after 2020 for 15 million common shares at an exercise price of $15 per share. The Company also held convertible bonds which were 7%, $200 million face amount issued in 2019, convertible into 12 million common shares. Lastly, there were Warrants granted in 2020, exercisable for 2 million common shares at an exercise price of $19 per share. Required: Compute Shutterpics 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.) Basic Diluted Numerator 1 1 1 S S Denominator = Earnings per Share = = $ $

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
See similar textbooks
icon
Related questions
Question

N3.

Account 

Shutterpics reported net income of $453 million in 2021 (tax rate 25%). The Company's capital structure and related events include the following: As of the beginning of 2021, 96 million common shares were outstanding and the average market price of the common shares during 2021 was $18 per share. On May 1, 2021, 6 million new shares of common stock were sold. On June 1, 2021, a 10% stock dividend was distributed. On October 1, 2021, 6 million shares were reacquired as treasury stock. Shutterpics, for the full year, also had 12 million shares of 8%, $5 par preferred shares (nonconvertible) outstanding. Certain key executives were granted stock options granted in 2016, exercisable after 2020 for 15 million common shares at an exercise price of $15 per share. The Company also held convertible bonds which were 7%, $200 million face amount issued in 2019, convertible into 12 million common shares. Lastly, there were Warrants granted in 2020, exercisable for 2 million common shares at an exercise price of $19 per share. Required: Compute Shutterpics 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.) Basic Diluted Numerator 1 1 1 $ $ Denominator = Earnings per Share = = SS 4
Transcribed Image Text:Shutterpics reported net income of $453 million in 2021 (tax rate 25%). The Company's capital structure and related events include the following: As of the beginning of 2021, 96 million common shares were outstanding and the average market price of the common shares during 2021 was $18 per share. On May 1, 2021, 6 million new shares of common stock were sold. On June 1, 2021, a 10% stock dividend was distributed. On October 1, 2021, 6 million shares were reacquired as treasury stock. Shutterpics, for the full year, also had 12 million shares of 8%, $5 par preferred shares (nonconvertible) outstanding. Certain key executives were granted stock options granted in 2016, exercisable after 2020 for 15 million common shares at an exercise price of $15 per share. The Company also held convertible bonds which were 7%, $200 million face amount issued in 2019, convertible into 12 million common shares. Lastly, there were Warrants granted in 2020, exercisable for 2 million common shares at an exercise price of $19 per share. Required: Compute Shutterpics 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.) Basic Diluted Numerator 1 1 1 $ $ Denominator = Earnings per Share = = SS 4
Expert Solution
steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS