On December 31, 2012, Berclair Inc. had 200 million shares ofcommon stock and 3 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2013, Berclairpurchased 24 million shares of its common stock as treasury stock.Berclair issued a 5% common stock dividend on July 1, 2013. Fourmillion treasury shares were sold on October 1. Net income for theyear ended December 31, 2013, was $150 million. Also outstanding atDecember 31 were incentive stock options granted to key executiveson September 13, 2008. The options are exercisable as of September13, 2012, for 30 million common shares at an exercise price of $56per share. During 2013, the market price of the common sharesaveraged $70 per share. The options were exercited on September 1.2013.
Required: Compute Berclair's basic and diluted earnings pershare for the year ended December 31, 2013.
On December 31, 2012, Berclair Inc. had 200 million shares ofcommon stock and 3 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2013, Berclairpurchased 24 million shares of its common stock as treasury stock.Berclair issued a 5% common stock dividend on July 1, 2013. Fourmillion treasury shares were sold on October 1. Net income for theyear ended December 31, 2013, was $150 million. Also outstanding atDecember 31 were incentive stock options granted to key executiveson September 13, 2008. The options are exercisable as of September13, 2012, for 30 million common shares at an exercise price of $56per share. During 2013, the market price of the common sharesaveraged $70 per share. The options were exercited on September 1.2013.
Required: Compute Berclair's basic and diluted earnings pershare for the year ended December 31, 2013.
