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 40 million shares of common) Convertible 10% bonds (convertible into 14.5 million shares of common) Henderson-Niles's net income for the year ended December 31, 2018, is $620 million. The income tax rate is 40%. Henderson- Niles paid dividends of $2 per share on its preferred stock during 2018. 100 milli 70 milli $ 1,100 milli

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 25E
icon
Related questions
Question
Accounting
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 40 million shares of common)
Convertible 10% bonds (convertible into 14.5 million shares of common)
Henderson-Niles's net income for the year
ended December 31, 2018, is $620 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 earnings per
share for the year ended December 31,
2018. (Enter your answers in millions (i.e.,
10,000,000 should be entered as 10).)
$
100 million
70 million
1,100 million.
Transcribed Image Text:Accounting 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 40 million shares of common) Convertible 10% bonds (convertible into 14.5 million shares of common) Henderson-Niles's net income for the year ended December 31, 2018, is $620 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 earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) $ 100 million 70 million 1,100 million.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning