Paid$-$in capital$-$excess of par on preferred stock

Retained earnings

Additional Information:

Proactive had $7$ million shares of preferred stock authorized, of which $2$ million were outstanding. All $2$ million shares outstanding

were issued in $2018$ for $$112$ a share. The preferred stock is convertible into common stock on a two$-$for$-$one basis until

December $31,2026,$ after which the preferred stock no longer is convertible. None of the preferred stock has been converted

into common stock at December $31,2024.$ There were no dividends in arrears.

Of the $13$ million common shares authorized, there were $8$ million shares outstanding on January $1,2024.$ Proactive also sold $3$

million shares at the beginning of September $2024$ at a price of $$52$ a share.

The company has an employee stock option plan in which certain key employees and officers may purchase shares of common

stock at the market price at the date of the option grant. All options are exercisable beginning one year after the date of the

grant and expire if not exercised within five years of the grant date. On January $1,2024,$ options for $2$ million shares were

outstanding at $$50$ a share. Options for $1$ million shares were exercised at the end of June $2024.$ No options expired during

Additional options for $2$ million shares were granted at $$50$ a share on July $1.$ The average price of the common stock was

$$60$ during the entire year and $$66\mathrm{.}67$ during the second half of the year.

The only changes in the shareholders' equity for $2024$ were those described above, $2024$ net income of $$70$ million, and cash

dividends paid.

Required:

to $4.$ Calculate basic and the diluted earnings per share.

Note: Round the intermediate calculations to one decimal place. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,$

$5,550,000$ should be entered as $5\mathrm{.}55).$

Answer is complete but not entirely correct.