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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
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 40 million shares of common) | 70 | million | |
Convertible 10% bonds (convertible into 14.5 million shares of common) | $ | 1,100 | million |
Henderson-Niless net income for the year ended December 31, 2018, is $620 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. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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