Question
In: Accounting
On December 31, 2017, Berclair Inc. had 500 million shares of common stock and 6 million...
On December 31, 2017, Berclair Inc. had 500 million shares of common stock and 6 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $800 million. The income tax rate is 40%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2013. The options are exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share. In 2014, $62.5 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, 2018.
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ekkarill92 answered 2 years agoRelated Solutions
On December 31, 2017, Berclair Inc. had 400 million shares of common stock and 6 million...
On December 31, 2017, Berclair Inc. had 400 million shares of
common stock and 6 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 30 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Five
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $650 million.
Required:
Compute Berclair's earnings...
On December 31, 2017, Berclair Inc. had 260 million shares of common stock and 6 million...
On December 31, 2017, Berclair Inc. had 260 million shares of
common stock and 6 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 24 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $200 million. The income tax rate...
On December 31, 2017, Berclair Inc. had 360 million shares of common stock and 3 million...
On December 31, 2017, Berclair Inc. had 360 million shares of
common stock and 3 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 88 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $550 million. Also outstanding at
December...
On December 31, 2017, Berclair Inc. had 520 million shares of common stock and 3 million...
On December 31, 2017, Berclair Inc. had 520 million shares of
common stock and 3 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 24 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $850 million. The income tax rate...
On December 31, 2017, Berclair Inc. had 540 million shares of common stock and 21 million...
On December 31, 2017, Berclair Inc. had 540 million shares of
common stock and 21 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 24 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $1,050 million.
Also outstanding at December...
On December 31, 2017, Berclair Inc. had 560 million shares of common stock and 5 million...
On December 31, 2017, Berclair Inc. had 560 million shares of
common stock and 5 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 24 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $950 million. The income tax rate...
On December 31, 2017, Berclair Inc. had 280 million shares of common stock and 3 million...
On December 31, 2017, Berclair Inc. had 280 million shares of
common stock and 3 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 24 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $250 million. The income tax rate...
On December 31, 2017, Berclair Inc. had 280 million shares of common stock and 3 million...
On December 31, 2017,
Berclair Inc. had 280 million shares of common stock and 3 million
shares of 9%, $100 par value cumulative preferred stock issued and
outstanding. On March 1, 2018, Berclair purchased 56 million shares
of its common stock as treasury stock. Berclair issued a 5% common
stock dividend on July 1, 2018. Four million treasury shares were
sold on October 1. Net income for the year ended December 31, 2018,
was $350 million.
Also outstanding at December...
On December 31, 2017, Berclair Inc. had 460 million shares of common stock and 4 million...
On December 31, 2017, Berclair Inc. had 460 million shares of
common stock and 4 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 128 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $800 million. Also outstanding at
December...
On December 31, 2017, Berclair Inc. had 400 million shares of common stock and 5 million...
On December 31, 2017, Berclair Inc. had 400 million shares of
common stock and 5 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 24 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $550 million. The income tax rate...
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