Compute basic and diluted earnings per share

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Question - Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021:

Common shares outstanding throughout the year 100 million

Convertible preferred shares (convertible into 10 million shares of common) 30 million

Convertible 8% bonds (convertible into 17.0 million shares of common) $2,200 million

Henderson-Niles's net income for the year ended December 31, 2021, is $840 million. The income tax rate is 25%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2021.

Required - Compute basic and diluted earnings per share for the year ended December 31, 2021.

Reference no: EM132958926

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