At December 31, 2013, the financial statements of Hollingsworth Industries included the following:
Net income for 2013 ...................... $560 million
Bonds payable,10%, convertible into 36 million shares of common stock . $300 million
Common stock:
Shares outstanding on January 1 ................. 400 million
Treasury shares purchased for cash on September 1 ........... 30 million
Additional data:
The bonds payable were issued at par in 2011. The tax rate for 2013 was 40%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2013.