Information from the financial statements of Henderson-Niles Industries included

Question

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shares outstanding throughout the year Convertible preferred shares (convertible into 32 million shares of common) Convertible 10% bonds (convertible into 13 5 million shares of common) 100 million 60 million S 900 million Henderson-Niles's 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 eamings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e 10,000,000 should be entered as 10).) Numerator DenominatorEarnings per share Basic Diluted

Explanation / Answer

Basic earning per share :

Numerator / Denominator = Earning per share Basic (520-120) / 100 = 4 per share Diluted (520+54) / 145.50 = 3.95 per share

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