Facts
Entity A has made a net profit attributable to ordinary shareholders of $2 million for the year to December 31, 20X1. Ten million ordinary shares were outstanding for the entire year. Since January 20X0 there has been $800,000 of 5% convertible loan stock in issue. The terms of conversion are for every $100 nominal value of stock.
On
|
June 30, 20X1 |
120 ordinary shares |
|
June 30, 20X2 |
150 ordinary shares |
|
June 30, 20X3 |
140 ordinary shares |
Assume that interest on loan stock is allowable for tax relief at 30%.
Required
Calculate basic and diluted earnings per share. (Assume that no conversion takes place in the year.)