Question - AT Co. is a calendar-year firm with 140 million common shares outstanding throughout 2013. As part of its executive compensation plan, at January 1, 2012, the company had issued 12 million executive stock options permitting executives to buy 12 million shares of stock for $10 each within the next eight years, but not prior to January 1, 2015. The fair value of the options was estimated on the grant date to be $4 per option. The stock options qualify for tax purposes as an incentive plan. The company's net income was $500 million in 2013. Its income tax rate is 35%. The average market price of the stock during 2013 was $13 per share.
Required: Determine basic and diluted earnings per share (rounded to two decimal places) for AT in 2013.