Net income for the year ended

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Reference no: EM13843543

On December 31, 2012, Berclair Inc. had 500 million shares of common stock and 22 million shares of 7%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2013, Berclair purchased 30 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on July 1, 2013. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2013, was $950 million.

Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2008. The options are exercisable as of September 13, 2012, for 72 million common shares at an exercise price of $60 per share. During 2013, the market price of the common shares averaged $90 per share.

The options were exercised on September 1, 2013.

Required:

Compute Berclair's both the basic and diluted earnings per share for the year ended December 31, 2013. (Round your answers to 2 decimal places.)

Reference no: EM13843543

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