Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 32 million shares of common) 60 million Convertible 10% bonds (convertible into 13.5 million shares of common) $900 million Henderson-Niless net income for the year ended December 31, 2018, is $520 million. The income tax rate is

40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2018.

Required: Compute basic and diluted earnings per share for the year ended December 31, 2018.