Problem $9$

On December $31,2024,$ Crestline Incorporated had $250$ million shares of common stock and $4$ million shares of $9\%,$ $$100$ par value cumulative preferred stock issued and outstanding.

A: On March $1,2025,$ Crestline repurchased $21$ million shares of its common stock as treasury stock.

B: Crestline issued a $5\%$ common stock dividend on July $1,2025.$

C: Six million treasury shares were reissued on October $1,2025.$

D: Net income for the year ended December $31,2025,$ was $$170$ million.

E: Additionally, as of December $31,35$ million incentive stock options were outstanding, which had been granted to key executives on September $13,2020.$

F: The options became exercisable on September $13,2024,$ allowing for the purchase of $35$ million common shares at an exercise price of $$65$ per share.

G: Throughout $2025,$ the average market price of the common shares was $$82$ per share.

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Compute Crestline's basic and diluted earnings per share for the year ended December $31,2025.($Note: Shares for stock options and the conversion of convertible securities have been adjusted for any stock splits or stock dividends.$)$