Ranking Dilutive Securities for the Calculation of Weighted Average Number of Shares

Potential ordinary shares:

Convertible preference shares — 500,000 entitled to a cumulative dividend of €5. Each is convertible to 3 shares.

3% convertible bond — nominal amount €50 million. Each €1,000 bond is convertible to 50 shares. There is no amortisation of premium or discounting affecting the interest expense.
¢ Options — 10 million with exercise price of €4.
Tax rate — 30%
Requirement Calculate the basic and diluted EPS.

Transcribed Image Text:

Net profit attributable to ordinary shareholders Net profit from discontinued activities Ordinary shares outstanding Average fair value of one ordinary share 20 million 5 million 50 million 5.00