At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 30...

At January 1, 2021, Canaday Corporation had outstanding the following securities:

690 million common shares
30 million 5% cumulative preferred shares, $50 par
6.4% convertible bonds, $3,000 million face amount, convertible into 60 million common shares

The following additional information is available:

On September 1, 2021, Canaday sold 72 million additional shares of common stock.
Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday’s common stock was $20 per share during 2021.
Canaday's net income for the year ended December 31, 2021, was $1,512 million. The effective income tax rate was 25%.

Required:
1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Expert Solution

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ekkarill92 answered 2 years ago

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