Problem - Basic and Diluted EPS
At December 31, 2009, the financial statements of Hollingsworth Industries included the following:
Net Income for 2009=$560 million
Bonds Payable, 10% convertible into 36million shares of common stock=$300 million
Common Stock:
Shares outstandingon January 1 = $400million
Treasury Shares purchased for cash on September 1 = $30 million
Additional Data: The bonds payable were issued at par in 2007. The tax rate for 2009 was 40%.
Compute the basic and diluted EPS for the year ended December 31, 2009.