Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9] On December 31, 2023, Berclair Incorporated had 300 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2024. Four million treasury shares were sold on October 1. .Net income for the year ended December 31, 2024, was $300 million. . The income tax rate is 25%. . Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019. • The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. . During 2024, the market price of the common shares averaged $70 per share. . In 2020, $50.0 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, 2024, (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Basic Numerator + Denominator Earnings per Share
Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9] On December 31, 2023, Berclair Incorporated had 300 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2024. Four million treasury shares were sold on October 1. .Net income for the year ended December 31, 2024, was $300 million. . The income tax rate is 25%. . Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019. • The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. . During 2024, the market price of the common shares averaged $70 per share. . In 2020, $50.0 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, 2024, (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Basic Numerator + Denominator Earnings per Share
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
Problem 1EP
Related questions
Question
F26.
![Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;
stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9]
On December 31, 2023, Berclair Incorporated had 300 million shares of common stock and 3 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
. On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock.
• Berclair issued a 5% common stock dividend on July 1, 2024.
• Four million treasury shares were sold on October 1.
.Net income for the year ended December 31, 2024, was $300 million.
. The income tax rate is 25%.
Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019.
• The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share.
. During 2024, the market price of the common shares averaged $70 per share.
• In 2020, $50.0 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, 2024, (Shares for stock options and
conversion of convertible securities have been adjusted for any stock split or stock dividend.)
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Basic
Diluted
Numerator +
+
+
Denominator W Earnings per Share
=
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ee16252-84a0-49ab-bb95-2632151cfacf%2F95b600c0-0cf3-42e7-ae1a-e4968b16ce6d%2F3q362ob_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;
stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9]
On December 31, 2023, Berclair Incorporated had 300 million shares of common stock and 3 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
. On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock.
• Berclair issued a 5% common stock dividend on July 1, 2024.
• Four million treasury shares were sold on October 1.
.Net income for the year ended December 31, 2024, was $300 million.
. The income tax rate is 25%.
Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019.
• The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share.
. During 2024, the market price of the common shares averaged $70 per share.
• In 2020, $50.0 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, 2024, (Shares for stock options and
conversion of convertible securities have been adjusted for any stock split or stock dividend.)
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Basic
Diluted
Numerator +
+
+
Denominator W Earnings per Share
=
0
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