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 32 million shares of common) 60 million Convertible 10% bonds (convertible into 13.5 million shares of common) $900 million Henderson-Niles’ net income for the year ended December 31, 2016, is $520 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2016. Required: Compute basic and diluted earnings per share for the year ended December 31, 2016.
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 32 million shares of common) 60 million Convertible 10% bonds (convertible into 13.5 million shares of common) $900 million Henderson-Niles’ net income for the year ended December 31, 2016, is $520 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2016. Required: Compute basic and diluted earnings per share for the year ended December 31, 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Convertible 10% bonds (convertible into 13.5 million shares of common) $900 million
Henderson-Niles’ net income for the year ended December 31, 2016, is $520 million. The income tax rate is
40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2016.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2016.
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