At January 1, 2016, Canaday Corporation had outstanding the following securities: 790 million common shares 45 million 4% cumulative preferred shares, $50 par 6% convertible bonds, $3,000 million face amount, convertible into 80 million common shares The following additional information is available: ⢠On September 1, 2016, Canaday sold 78 million additional shares of common stock. ⢠Incentive stock options to purchase 50 million shares of common stock after July 1, 2015, at $10 per share were outstanding at the beginning and end of 2016. The average market price of Canadayâs common stock was $25 per share during 2016. ⢠Canaday's net income for the year ended December 31, 2016, was $1,552 million. The effective income tax rate was 40%.
At January 1, 2016, Canaday Corporation had outstanding the following securities: 790 million common shares 45 million 4% cumulative preferred shares, $50 par 6% convertible bonds, $3,000 million face amount, convertible into 80 million common shares The following additional information is available: ⢠On September 1, 2016, Canaday sold 78 million additional shares of common stock. ⢠Incentive stock options to purchase 50 million shares of common stock after July 1, 2015, at $10 per share were outstanding at the beginning and end of 2016. The average market price of Canadayâs common stock was $25 per share during 2016. ⢠Canaday's net income for the year ended December 31, 2016, was $1,552 million. The effective income tax rate was 40%.
Related questions
| At January 1, 2016, CanadayCorporation had outstanding the following securities: |
| 730 million common shares | |
| 50 million 5% cumulativepreferred shares, $50 par | |
| 6% convertible bonds, $2,000million face amount, convertible into 60 million common shares | |
| The following additionalinformation is available: |
| ⢠| On September 1, 2016, Canadaysold 84 million additional shares of common stock. |
| ⢠| Incentive stock options to purchase 50 million shares of commonstock after July 1, 2015, at $10 per share were outstanding at thebeginning and end of 2016. The average market price of Canadayâscommon stock was $25 per share during 2016. |
| ⢠| Canaday's net income for the year ended December 31, 2016, was$1,528 million. The effective income tax rate was 40%. |
| Required: |
| 1. &2. | Calculate basic and diluted earnings per common share for theyear ended December 31, 2016. (Enter your answers inmillions (i.e., 10,000,000 should be entered as 10).) |
2
Information from the financial statements of Henderson-NilesIndustries included the following at December 31, 2016: |
| Common sharesoutstanding throughout the year | 100 | million | |
| Convertiblepreferred shares (convertible into 30 million shares ofcommon) | 65 | million | |
| Convertible 10%bonds (convertible into 21.5 million shares of common) | $ | 2,600 | million |
Henderson-Nilesâ net income for the year ended December 31,2016, is $920 million. The income tax rate is 40%. Henderson-Nilespaid dividends of $3 per share on its preferred stock during2016. |
| Required: |
Compute basic and diluted earnings per share for the year endedDecember 31, 2016. (Enter your answers in millions (i.e.,10,000,000 should be entered as 10).) |
The following partial information is taken from the comparativebalance sheet of Levi Corporation: |
| Shareholdersâ equity | 12/31/2016 | 12/31/2015 |
| Common stock, $5 parvalue; 20 million shares authorized; 15 million sharesissued and 9 million shares outstanding at 12/31/2016; and ____million shares issued and ____shares outstanding at12/31/2015. | $75 million | $45 million |
| Additional paid-incapital on common stock | 520 million | 392 million |
| Retainedearnings | 197 million | 157 million |
| Treasury commonstock, at cost, 6 million shares at 12/31/2016 and 4 million shares at 12/31/2015 | (72 million) | (50 million) |
| Total shareholdersâequity | $720 million | $544 million |
What was the average price of the additional treasury sharespurchased by Levi during 2016? (Round your answer to 2decimal places.) |
$11.00 per share.
$12.00 per share.
$12.50 per share.
None of these answer choices is correct.
