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Check my w Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021 Common shares outstanding throughout the year Convertible preferred shares (convertible into 25 million shares of common) Convertible 8% bonds (convertible into 19
Check my w Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2021 Common shares outstanding throughout the year Convertible preferred shares (convertible into 25 million shares of common) Convertible 8% bonds (convertible into 19.5 million shares of common) 100 million 80 million $2,900 million ok Henderson-Niles's net income for the year ended December 31, 2021, is $980 million. The income tax rate is 25%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2021. ances Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (le, 10,000,000 should be entered as 10). Round "Earnings per share" answers to 2 decimal places.) Numerator Denominator Earnings per share - Basic Diluted
Expert Solution
1.
| Particulars | Amount ($) in million |
| Net Income | 980 |
| Preference dividend | 50 |
| Net Income after Preference dividend (Numerator) |
930 |
| Common Shares (Denominator) |
10 |
| Basic Earning per Share | 93 |
Assuming Face value of common stock is $ 10/shares
2.
| Particulars | Amount ($) in million |
| Net Income | 980 |
| After tax Cost of Interest | 174 |
| Net Income Before Preference dividend & after tax cost of interest (Numerator) |
1154 |
| Common Shares including convertiable shares (Denominator) |
29.5 |
| Diluted Earning per Share | 39.12 |
Assuming Face value of common stock is $ 10/shares
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