4.

At December 31, 2016, the financial statements of Hollingsworth Industries included the following:

Net income for 2016

$

690

million

Bonds payable, 10%, convertible into 57 million shares of common stock

$

500

million

Common stock:

Shares outstanding on January 1

600

million

Treasury shares purchased for cash on September 1

36

million

Additional data:

The bonds payable were issued at par in 2014. The tax rate for 2016 was 40%.

Required:

Compute basic and diluted EPS for the year ended December 31, 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

	Numerator	/	Denominator	=	Earnings per share
Basic	$690	/	612	=	$1.13
Diluted		/		=	0