Evaluate berclairs basic and diluted earnings per share

Assignment Help Financial Accounting

Reference no: EM135947

On 31^st December, 2012, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9 percent, $100 par value cumulative preferred stock issued and outstanding. On 1^st March, 2013, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5 percent common stock dividend on 1^st July, 2013. Four million treasury shares were sold on 1^st October. Net income for the year ended 31^st December, 2013, was $150 million. The income tax rate is 40%.

Also outstanding at 31^st December was incentive stock options granted to key executives on September 13, 2008. The options are exercisable as of 13^th September, 2012, for 30 million common shares at an exercise price of $56 per share. In 2013, the market price of the common shares averaged $70 per share $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value in 2009.

Required:

Evaluate Berclair's basic and diluted earnings per share for the year ended 31^st December, 2013.

Reference no: EM135947

Questions Cloud

What is the minimum-cost schedule for the bank : What is the minimum-cost schedule for the bank. What are the limitations of the model used to answer question 1. Costs might be reduced by relaxing the constraint that no more than 40% of the day's requirement be met by parttimers. Would changing th..

Producers of hamburger : Which of these same curve would shift as a result of the per-burger tax. Curves average fixed cost,marginal cost would shift as a result.

Include a simple organizational chart : Madagascar, Indonesia and the Amazon basin have some of the greatest numbers of different species concentrated in a single area. What kinds of environments do you think encourage greater biodiversity.

Sweezy oligopoly and cournot oligopoly : Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend

Evaluate berclairs basic and diluted earnings per share : Evaluate Berclairs basic and diluted earnings per share for the year ended December, 2013.

What is the standard habitat of clostridium perfringens : Results of this analysis show that one of the most rapidly reassociating classes of DNA is substantially reduced in the older individual with respect to the 2 year-old. How can you describe this finding.

Examine the customer service environment : Analysis and Recommendations: Using what you've learned from the interview and your research, examine the customer service environment at this company. How can customer service be enhanced? What are your endorsements to this company based on what ..

Find incidence rate of schistosomiasis amongst fisherman : While a tall homozygous plant was crossed with a short homozygous plant, the F1 offspring were all tall. No short plants were present in the F1 generation. Which principle does this situation represent.

Economic analysis section of a business proposal : Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend

User Account

All Pages