Saved Help Save & Exit Submit Check my work 5 On December 31, 2017, Berclair Inc

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Saved Help Save & Exit Submit Check my work 5 On December 31, 2017, Berclair Inc. had 500 million shares of common stock and 23 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 60 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2018, Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $1,150 million. nts Also outstanding at December 31 were 90 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 90 million common shares at an exercise price of $78 per share. During 2018, the market price of the common shares averaged $90 per share. eBook Hint Prim The options were exercised on September 1, 2018. Required (i.e., 10,000,000 should be entered as 10).) References Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions NumeratorDenominatorEarnings per Share Basic EPSs Diluted EPS

Explanation / Answer

?I. Earning attributable to common stock Amount in Million $

II.    Weighted Average Common Stock.

III. Diluted Additional Common Stock . = 90*78/90=78

IV. Weighted Average Diluted Common Stock.

130.5

Net Income    1150 Less: Dividend of Preferred Stock(2300*9%) 207 943

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