Compute the basic and diluted eps for the year ended

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Problem - Basic and Diluted EPS

At December 31, 2009, the financial statements of Hollingsworth Industries included the following:

Net Income for 2009=$560 million

Bonds Payable, 10% convertible into 36million shares of common stock=$300 million

Common Stock:

Shares outstandingon January 1 = $400million

Treasury Shares purchased for cash on September 1 = $30 million

Additional Data: The bonds payable were issued at par in 2007. The tax rate for 2009 was 40%.

Compute the basic and diluted EPS for the year ended December 31, 2009.

Reference no: EM131782360

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