Diluted is computed wrong

Question 2 (of 5 value: 10.00 points on December 31, 2015, Berclair Inc. had 540 million shares ofcommon stock and 4 milion shares of 9%. $100 par value cumulative preferred stock issued and outstanding. On March 1, 2016, Berclair purchased 24 million shares of its common stock as treasury stock. Berar issued a 5% common stock dividend on July 1, 2016. Four million treasury shares were sold on October 1. Net inoome for the year ended December 31, 2016, was S900 milion. The income tax rate is 40%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2011. The options are exercisable as of September 13, 2015, for 30 million common shares at an exercise price of $56 per share During 2016, the market price of the cogmon s shares averaged $70 per In 2012 $62.5 million of 8% bonds, convertie into 6 million common shares, were issued at face value. Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2016. (Enter your answers in millions (ie, 10,000,000 should be entered as 10).) 1.58 1.60 64 s Basic EPS Diluted EPss 864/ 864 541S eBook &Resources eBlooki Describeshatis.meant.by.jhe 2 4