Lapardy Limited had net income for the fiscal year ending June 30, 2011, of $16.4 million. There

Question:

Lapardy Limited had net income for the fiscal year ending June 30, 2011, of $16.4 million. There were 2 million common shares outstanding throughout 2011. The average market price of the common shares for the entire fiscal year was $75. Lapardy’s tax rate was 40% for 2011.
Lapardy had the following potential common shares outstanding during 2011:
1. Options to buy 100,000 common shares at $60 per share
2. 800,000 convertible preferred shares entitled to a cumulative of $8 per share. Each preferred share is convertible into two common shares.
3. 5% convertible with a principal amount of $100 million, issued at par. Each $1,000 debenture is convertible into 20 common shares.
Instructions
For the fiscal year ended June 30, 2011, calculate the following for Lapardy Limited. For simplicity, ignore the requirement to record the debt and equity components separately.
(a) Basic earnings per share
(b) Diluted earnings per share Debentures
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