On 31st december 2012 berclair inc had 200 million shares

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On 31st December, 2012, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9 percent, $100 par value cumulative preferred stock issued and outstanding. On 1st March, 2013, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5 percent common stock dividend on 1st July, 2013. Four million treasury shares were sold on 1st October. Net income for the year ended 31st December, 2013, was $150 million. The income tax rate is 40%.

Also outstanding at 31st December was incentive stock options granted to key executives on September 13, 2008. The options are exercisable as of 13th September, 2012, for 30 million common shares at an exercise price of $56 per share. In 2013, the market price of the common shares averaged $70 per share $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value in 2009.

Required:

Evaluate Berclair's basic and diluted earnings per share for the year ended 31st December, 2013.

Reference no: EM13351923

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