On December 31, 2015, Berclair Inc. had 380 million shares ofcommon stock and 4 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2016, Berclairpurchased 96 million shares of its common stock as treasury stock.Berclair issued a 5% common stock dividend on July 1, 2016. Fourmillion treasury shares were sold on October 1. Net income for theyear ended December 31, 2016, was $600 million.
Also outstanding at December 31 were incentive stock optionsgranted to key executives on September 13, 2011. The options wereexercisable as of September 13, 2015, for 30 million common sharesat an exercise price of $56 per share. During 2016, the marketprice of the common shares averaged $70 per share.
Required: Compute Berclair's basic and diluted earnings pershare for the year ended December 31, 2016. (Enter your answers inmillions (i.e., 10,000,000 should be entered as 10).)
On December 31, 2015, Berclair Inc. had 380 million shares ofcommon stock and 4 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2016, Berclairpurchased 96 million shares of its common stock as treasury stock.Berclair issued a 5% common stock dividend on July 1, 2016. Fourmillion treasury shares were sold on October 1. Net income for theyear ended December 31, 2016, was $600 million.
Also outstanding at December 31 were incentive stock optionsgranted to key executives on September 13, 2011. The options wereexercisable as of September 13, 2015, for 30 million common sharesat an exercise price of $56 per share. During 2016, the marketprice of the common shares averaged $70 per share.
Required: Compute Berclair's basic and diluted earnings pershare for the year ended December 31, 2016. (Enter your answers inmillions (i.e., 10,000,000 should be entered as 10).)
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