Problem - Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2011:
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Common shares outstanding throughout the year
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100 million
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Convertible preferred shares (convertible into 32 million shares of common)
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58 million
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Convertible 10% bonds (convertible into 14.00 million shares of common)
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$930 million
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Henderson-Niles' net income for the year ended December 31, 2011, is $520 million. The income tax rate is 35%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2011.
Required: Compute basic and diluted earnings per share for the year ended December 31, 2011.