Reference no: EM132677679

Question - At January 1, 2021, Canaday Corporation had outstanding the following securities:

750 million common shares

20 million 8% cumulative preferred shares, $50 par

6.4% convertible bonds, $2,500 million face amount, convertible into 80 million common shares

The following additional information is available:

On September 1, 2021, Canaday sold 72 million additional shares of common stock.

Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $20 per share during 2021.

Canaday's net income for the year ended December 31, 2021, was $2,190 million. The effective income tax rate was 25%.

Required - Calculate basic and the diluted earnings per common share for the year ended December 31, 2021.