Compute basic and diluted earnings per share for the year

Reference no: EM133360024

At December 31, 2021, the financial statements of Cavanni Casting Corporation included the following:
Net income for 2021 $500 million
Common stock, $1 par:
Shares outstanding on January 1 150 million shares
Shares retired for cash on February 1 24 million shares
Shares sold for cash on September 1 18 million shares
2-for-1 split on July 23
Preferred stock, 10%, $70 par, cumulative, nonconvertible $ 70 million
Preferred stock, 8%, $50 par, cumulative, convertible into 4 million shares of common stock $100 million
Incentive stock options outstanding, fully vested, for 4 million shares of common stock; the exercise price is $15
Bonds payable, 10%, convertible into 20 million shares of common stock $200 million

Additional data:

The market price of the common stock averaged $20 during 2021.

The convertible preferred stock and the bonds payable had been issued at par in 2019. The tax rate for the year was 25%.

Required: Compute basic and diluted earnings per share for the year ended December 31, 2021 (round to two decimal places).

Reference no: EM133360024

Questions Cloud

Software development methodology : Select a development model to undertake the task. Provide the description e.g. what documentations to draft for each phrase.

Explain how to complete blocks 6, 12, 15b and 15c : In your own words, explain how to complete Blocks 6, 12, 15B and 15C on commission-only paid employee's ROE

Describe one method of multifactor authentication : Describe one method of multifactor authentication that you have experienced, and discuss the pros and cons of using multifactor authentication.

Estimated tax payments were made during 2020 : ACCT 4300 William Paterson University Beginning balance in allowances for uncollectible accounts 500 End balance in allowances for uncollectible accounts 800

Compute basic and diluted earnings per share for the year : Compute basic and diluted earnings per share for the year ended December 31, 2021 (round to two decimal places).

What types of virtualization datacenters would most benefit : Do you think it would be possible or a good idea and in what circumstances to not use vCenter Server? What types of Virtualization Datacenters would most

What role does leadership play in strategic planning : What role does leadership play in strategic planning? Why does an effective organization need a strategic plan?

Do you think the department should restrict funding : do you think the department should restrict funding to institutions with low rates of completion? Are there any unintended consequences of this action?

How a cloud database management system distributes data : Literature supported explanation on when and why to use cloud databases and when to use ones managed on a single-device one.

User Account

All Pages