Check my work 8 Exercise 19-17 EPS; stock dividend; nonconvertible preferred sto

Question

Check my work 8 Exercise 19-17 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [L019-5,19-6,19-7,19-8] 2 points On December 31, 2017, Berclair Inc. had 540 million shares of common stock and 4 million shares of 9%, SOO par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 160 million shares of its common stock as treasury stock. Berclair issued a 5% 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 $1,000 million. Skipped eBook Print References Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share. Required Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e 0,000,000 should be entered as 10).) Numerator DenominatorEarnings per Share Basic EPS Diluted EPS

Explanation / Answer

Basic EPS Net Income-Preferred dividend/weighted avg shares in $ (1000-(4*100*9%))/((540*1.05)+(-160*10/12*1.05)+(4*3/12)) 2.25 Numerator Denominator EPS Basic EPS 964 428 2.25 Diluted EPS 964 434 2.22 Potential shares 30*56 1680 Market 1680/70 24 Diluted shares 30-24 6 If any doubt please comment

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