Calculate the diluted earnings per common share for the

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Reference no: EM13567010

At January 1, 2013, Canaday Corporation had outstanding the following securities:
700 million common shares
35 million 8% cumulative preferred shares, $50 par
8% convertible bonds, $2,500 million face amount, convertible into 70 million common shares

The following additional information is available:
• On September 1, 2013, Canaday sold 75 million additional shares of common stock.

•Incentive stock options to purchase 50 million shares of common stock after July 1, 2012, at $10 per share were outstanding at the beginning and end of 2013. The average market price of Canaday's common stock was $20 per share during 2013.

•Canaday's net income for the year ended December 31, 2013, was $1,516 million. The effective income tax rate was 40%.

Required:

1.Calculate basic earnings per common share for the year ended December 31, 2013. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

2.Calculate the diluted earnings per common share for the year ended December 31, 2013. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM13567010

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