Rice IncHad 420 Million Shares of Common Stock and 1 Million

Essay

Rice Inc.had 420 million shares of common stock and 1 million shares of 6%,$200 par,cumulative preferred stock outstanding at the end of 2015 and 2016.No dividends were declared or paid on either class of stock in either year.Net income for 2016 was $398.4 million.The company's tax rate is 30%.
Required:
Compute basic earnings per share for the year ended December 31,2016.