* 7" 1119-25 Diluted EPS, Cascade: Ashante Sports Collections Limited {ASCL} ended salts with ?00,000 common shares outstanding. after issuing 200.000 common shares for cash on 31 December. The tax rate is 40%. There were no other common share transactions during the period. Net earnings were $1 W300000 The following elements are part of ASCL's capital structure: a. ASCL had 355000.000 {par value} of 5% bonds payable outstanding during the year. The bonds are convertible into 30 common shares for each $1.000 bond. Bond imerest expense was $400,000 for the pear. b. AEBL had 40.000 options outstanding throughout soxs to purchase 12o.coo common shares for $3 per share. The average share price during the year was $1 5. The options were not exercisable until 203110. Page 11 59 c. ABEL had T0000. $1.25 preferred shares outstanding. The shares were cumulative. No dividends were declared in 20KB. The shares were convertible into 50.000 common shares. d. ASDL had a contingent share agreement outstanding to issue 50.000 common shares to the prior shareholders of a company,r that ABEL had acquired in 20x2. The shares become issuable if the acquired company's operations accumulate $5,000,000 ot post-acquisition earnings before the end of soxs. Earnings have been $3,500,000 to date. and the target is expected to be met in 201?. e. ASCL had $0,000,000 [par value} of 5% bonds payable. issued on 31 March 2015. The bonds are convertible into 40 common shares for each $1.000 bond. Bond interest expense was $205,?50 for the nine months of the year that the bond was outstanding. Required: Compute basic and named EPs tor sot-:5