Reference no: EM132498613

At January 1, 2021, Canaday Corporation had outstanding the following securities:

780 million common shares

40 million 8% cumulative preferred shares, $50 par

6.4% convertible bonds, $2,500 million face amount, convertible into 70 million common shares

The following additional information is available:

1. On September 1, 2021, Canaday sold 72 million additional shares of common stock.
2. Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $20 per share during 2021.
3. Canaday's net income for the year ended December 31, 2021, was $1,548 million. The effective income tax rate was 25%.

Required:

Question 1: Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)