At January 1, 2024, M. E. Gainor Corporation had outstanding the following securities: 800 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,500 million face amount, convertible into 90 million common shares The following additional information is available: On September 1, 2024, M. E. Gainor sold 75 million additional shares of common stock. Incentive stock options to purchase 60 million shares of common stock after July 1, 2023, at $12 per share, were outstanding at the beginning and end of 2024. The average market price of Gainor's common stock was $18 per share during 2024. ⚫ Gainor's net income for the year ended December 31, 2024, was $2,310 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, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places.
At January 1, 2024, M. E. Gainor Corporation had outstanding the following securities: 800 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,500 million face amount, convertible into 90 million common shares The following additional information is available: On September 1, 2024, M. E. Gainor sold 75 million additional shares of common stock. Incentive stock options to purchase 60 million shares of common stock after July 1, 2023, at $12 per share, were outstanding at the beginning and end of 2024. The average market price of Gainor's common stock was $18 per share during 2024. ⚫ Gainor's net income for the year ended December 31, 2024, was $2,310 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, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places.
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 10MC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning