E plc has an issued share capital consisting of 800,000 ordinary shares. There are no preference shares.
Question:
E plc has an issued share capital consisting of 800,000 ordinary shares. There are no preference shares. Some years ago, the company issued £1 million of 10% convertible loan stock, convertible in 2022 at the rate of two ordinary shares for every £10 of loan stock. The company's profit after tax for the year to 31 March 2018 is £640,000.
Required:
(a) Calculate basic EPS for the year to 31 March 2018.
(b) Calculate diluted EPS for the year to 31 March 2018, assuming that the company pays tax at 20%.
(c) Rework both of the above calculations, now assuming that the loan stock was not issued "some years ago" but was in fact issued on 1 October 2017.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Question Posted: