As of December 31, 2011, JPMorgan Chase & Co. was one of the largest banking institutions in the United States with $2.3 trillion in assets, $183.6 billion in stockholders’ equity, and operations in more than 60 countries. For the year ended December 31, 2011, JPMorgan Chase had net income of $18,976 million and paid preferred dividends of $1,408 million. An average of 3,900 million common shares were outstanding during the year.

1. Compute JPMorgan Chase’s basic earnings per common share in 2011.

2. Suppose all preferred stock was convertible into 336 million shares of common stock. Compute diluted earnings per common share.