On 1 January 2018, G plc issued 2 million of 7% convertible loan stock. The holders of
Question:
On 1 January 2018, G plc issued £2 million of 7% convertible loan stock. The holders of this stock may choose to convert the stock to ordinary shares on 1 January 2022, 2023 or 2024. The number of ordinary shares into which the stock will be converted is as follows:
The company's profit after tax for the year to 30 September 2019 was £2.2 million. The comparative figure for the year to 30 September 2018 was £2.4 million. The company pays tax at 19%. On 1 October 2017, the company's issued share capital consisted of 1.5 million 12% preference shares of £1 each and 5 million ordinary shares of 20p each.
On 1 April 2019 the company issued a further 500,000 ordinary shares at full market price. The preference dividend was paid in full in both the year to 30 September 2018 and the year to 30 September 2019.
Required:
(a) Calculate basic EPS and diluted EPS for the year to 30 September 2018.
(b) Calculate basic EPS and diluted EPS for the year to 30 September 2019.
Step by Step Answer:
a The preference dividend is 180000 so profit attributable to the ordinary shares in the year to 30 ...View the full answer
