In: Accounting
Information from the financial statements of Jay Industries
included the following at December 31, 2021:
Common shares outstanding throughout the year | 100 | million | |
Convertible preferred shares (convertible into 36 million shares of common) | 60 | million | |
Convertible 8% bonds (convertible into 14.5 million shares of common) | $ | 1,600 | million |
Jays’s net income for the year ended December 31, 2021, is $740
million. The income tax rate is 25%. Jays paid dividends of $3 per
share on its preferred stock during 2021.
Required:
Compute 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). Round "Earnings per share"
answers to 2 decimal places.)