Question
Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2016: Common shares outstanding throughout the year 100 million Convertible preferred
Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2016: Common shares outstanding throughout the year 100 million Convertible preferred shares (convertible into 64 million shares of common) 80 million Convertible 10% bonds (convertible into 18.0 million shares of common) $ 1,300 million Henderson-Niles net income for the year ended December 31, 2016, is $660 million. The income tax rate is 40%. Henderson-Niles paid dividends of $3 per share on its preferred stock during 2016.
Required: Compute basic and diluted earnings per share for the year ended December 31, 2016. Show all work.
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