Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2011: Henderson-Niles' net

Question:

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2011:

Henderson-Niles' net income for the year ended December 31, 2011, is $520 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2011.

Required:

Compute basic and diluted earnings per share for the year ended December 31, 2011.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...