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 = = $ $
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
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Question
N3.
Account
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
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