Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares s stock options (LO19-5, 19-6, 19-7, 19-8) On December 31, 2023, Berciair Incorporated 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, 2024, Berclair purchased 88 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 $550 million Basic DA Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2019- The options were exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per shar During 2024, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024, (Sheres 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 (.e., 10,000,000 should be entered as 10). Denominator
Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares s stock options (LO19-5, 19-6, 19-7, 19-8) On December 31, 2023, Berciair Incorporated 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, 2024, Berclair purchased 88 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 $550 million Basic DA Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2019- The options were exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per shar During 2024, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024, (Sheres 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 (.e., 10,000,000 should be entered as 10). Denominator
Cornerstones of Financial Accounting
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Chapter10: Stockholder's Equity
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Problem 67E: Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its...
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Transcribed Image Text:Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares se
stock options [LO19-5, 19-6, 19-7, 19-8)
On December 31, 2023, Berciair Incorporated 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, 2024, Berclair purchased 88 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 $550 million
Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2019.
• The options were 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.
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 (.e., 10,000,000 should be entered as 10).
Basic
Diluted
Numrator
Denominator . Earnings par Share
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