1.At December 31, 2017 and 2018, Funk & Noble Corporation had outstanding 840 million shares of common stock and 9 million shares of 6%, $100 par value cumulative preferred stock. No dividends were declared on either the preferred or common stock in 2017 or 2018. Net income for 2018 was $1,062 million. The income tax rate is 40%. Calculate earnings per share for the year ended December 31, 2018.

2.Fully vested incentive stock options exercisable at $30 per share to obtain 15,000 shares of common stock were outstanding during a period when the average market price of the common stock was $45 and the ending market price was $45. By how many shares will the assumed exercise of these options increase the weighted-average number of shares outstanding when calculating diluted earnings per share?