Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasuryshares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9]On December 31, 2020, Berclair Inc. had 500 million shares of common stock and 3 million shares of 9%,$100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend onJuly 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December31, 2021, was $800 million. The income tax rate is 25%.Also outstanding at December 31 were incentive stock options granted to key executives on September 13,2016. The options are exercisable as of September 13, 2020, for 30 million common shares at an exerciseprice of $56 per share. During 2021, the market price of the common shares averaged $70 per share.In 2017, $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, 2021. (Enteryour answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediatecalculations.)NumeratorDenominatorEarnings per ShareBasicDiluted

Given, Net income = $800 million Preferred dividend = ( 9% ×$100=$9/share)…

Answered: On December 31, 2020, Berclair Inc. had…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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On December 31, 2023, Berclair Incorporated 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, 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 $1,050 million. • Also outstanding at December 31 were 84 million incentive stock options granted to key executives on September 13, 2019. • The options were exercisable as of September 13, 2023, for 84 million common shares at an exercise price of $75 per share. • During 2024, the market price of the common shares averaged $100 per share. • The options were exercised on September 1, 2024. 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…
Dulcinea Corporation had $1,000,000 of net income in 2022. On January 1, 2022, there were 225,000 shares of common stock outstanding. On April 1, there were 12,000 additional shares issued. On July 1, Dulcinea issued a 10% stock dividend and on September 1, Dulcinea bought 20,000 shares of treasury stock. The market price of the common stock averaged $30 during 2022. The tax rate is 30%. During 2022, there were 10,000 shares of cumulative, convertible preferred stock outstanding. The preferred is $100 par, pays $4 per share in dividends per year and each share of preferred stock is convertible into two shares of common stock. Dulcinea issued $5,000,000 of 5% convertible bonds at face value ten years earlier. All bonds remained outstanding throughout 2022. Each $1,000 bond is convertible into 10 shares of common stock. Required: Calculate the weighted average number of shares outstanding for 2022 to be used to calculate basic earnings per share. Compute basic…
At the beginning of 2019, Hardin Company had 200,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued 48,000 shares of stock at $25 per share. June 1 Issued a 15% stock dividend. July 1 Issued 10,000 shares of stock at $30 per share. Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Oct. 31 Reacquired 94,000 shares as treasury stock at a cost of $33 per share. Nov. 30 Reissued 46,000 treasury shares at a price of $36 per share. Required: 1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. fill in the blank 1 shares2. Determine the number of common shares outstanding at December 31, 2019. fill in the blank 2 shares
Denfort corp had 4,000 shares of P7.00, P100 par preferred stock and 50,000 shares of common stock outstanding throughout 2018. During 2018, it declared a dividend of P7.00 per share on its common stock. Compute earnings per share for 2018 if its income statement showed net income of 630,000.
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Atlanta Co. has 100,000 common shares outstanding as of January 1, 2020 and after-tax net income of $300,000 for 2020. On March 31, 2020 Atlanta Co repurchased 5,000 shares of its outstanding common stock. On October 1, 2020, the company issues an additional 50,000 shares of common stock. On October 31, 2020 the company distributed a stock dividend of 40%. The company also has 20,000 shares of 4% $10 par cumulative preferred stock outstanding. Assume that 5,000 shares of the preferred stock have the option to be converted to 2,000 shares of common stock at any time. In 2019 Atlanta Co. issued stock options to its 2 top executives that allow them to each purchase up to 1,000 shares of common stock at a purchase price of $25 per share. The current market price of Atlanta Co common stock is $40 per share and Atlanta Co.’s income tax rate is 30%. Compute the Basic EPS___________________________ Compute Fully Diluted EPS_________________________ *Urgent
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During the first year Zidux corp issued 80,000 shares of $4 par value common stock at a price of $50 cash per share. Zidux Corp was organized on January 2, 2018. On December 31, 2018: Net Income = $350,000 Cash Dividends paid= $70,000 Find the amount Zidux will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess to par.
On December 31, 2023, Berclair Incorporated 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, 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 $250 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.…
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on September 30, 2021, for $45 per share. Net income for 2021 was $180,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 50,000 common shares at $40. The market price of the common shares averaged $50 during 2021. Compute Brisbane's basic and diluted earnings per share (rounded to 2 decimal places) for 2021.
On January 1, 2020, Dallas Company purchased 80,000 shares of Washington Company's $10 par common stock for $42 per share. During 2020, Washington paid total dividends of $600,000 and reported net income of $900,000. Washington stock was trading for $44 per share on December 31, 2020. During 2021, Washington paid total dividends of $100,000 and reported net loss of $300,000. Washington stock was trading for $40 per share on December 31, 2021. Instructions: a. Prepare all necessary journal entries for 2020 and 2021 if Washington has 800,000 shares of common stock outstanding. b. Prepare all necessary journal entries for 2019 and 2020 if Washington has 200,000 shares of common stock outstanding.
On December 31, 2020, Berclair Inc. had 460 million shares of common stock and 9 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 48 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Eight million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $800 million. Required: Compute Berclair's 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).)

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