Exercise 19-18 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options exercised [LO19-5, 19-6, 19-7, 19-8] On December 31, 2023, Berclair Incorporated had 400 million shares of common stock and 14 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock. ⚫ Berclair issued a 6% 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 $700 million. Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2019. The options were exercisable as of September 13, 2023, for 63 million common shares at an exercise price of $60 per share. During 2024, the market price of the common shares averaged $70 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 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). Answer is complete but not entirely correct. Numerator Basic $ 574 Diluted $ 574 Denominator Earnings per Share 328 = $ 1.75 319 = $ 1.80
Exercise 19-18 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options exercised [LO19-5, 19-6, 19-7, 19-8] On December 31, 2023, Berclair Incorporated had 400 million shares of common stock and 14 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock. ⚫ Berclair issued a 6% 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 $700 million. Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2019. The options were exercisable as of September 13, 2023, for 63 million common shares at an exercise price of $60 per share. During 2024, the market price of the common shares averaged $70 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 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). Answer is complete but not entirely correct. Numerator Basic $ 574 Diluted $ 574 Denominator Earnings per Share 328 = $ 1.75 319 = $ 1.80
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 67E: Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its...
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![Exercise 19-18 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;
stock options exercised [LO19-5, 19-6, 19-7, 19-8]
On December 31, 2023, Berclair Incorporated had 400 million shares of common stock and 14 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock.
⚫ Berclair issued a 6% 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 $700 million.
Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2019.
The options were exercisable as of September 13, 2023, for 63 million common shares at an exercise price of $60 per share.
During 2024, the market price of the common shares averaged $70 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 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).
Answer is complete but not entirely correct.
Numerator
Basic
$
574
Diluted
$
574
Denominator
Earnings per Share
328 =
$
1.75
319 =
$
1.80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cefcc67-264c-4b16-b353-25d45483bbc5%2Fd0d80116-4926-4a01-b950-68eb980f7203%2Frwjx27s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 19-18 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;
stock options exercised [LO19-5, 19-6, 19-7, 19-8]
On December 31, 2023, Berclair Incorporated had 400 million shares of common stock and 14 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock.
⚫ Berclair issued a 6% 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 $700 million.
Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2019.
The options were exercisable as of September 13, 2023, for 63 million common shares at an exercise price of $60 per share.
During 2024, the market price of the common shares averaged $70 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 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).
Answer is complete but not entirely correct.
Numerator
Basic
$
574
Diluted
$
574
Denominator
Earnings per Share
328 =
$
1.75
319 =
$
1.80
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