Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A.Halium Company issued 400,000 $100 6% convertible loan notes on 1 April 2015. The company has in issue 50M $1 ordinary shares. Interest is payable

A.Halium Company issued 400,000 $100 6% convertible loan notes on 1 April 2015. The company has in issue 50M $1 ordinary shares. Interest is payable annually in arrears on 31 March each year. The loan notes can be converted to equity shares on the basis of 20 shares for each $100 loan note on March 2018 or redeemed at par for cash on the same date. The debt component of the loan is $37,792M and a similar loan with no conversion right would be at 8% interest. The carrying amount for the loan as at 31 March 2016 is

$38,415M with a finance cost of $3.023M. The company's tax rate is 20% and the earnings for the period is $14.327M

Calculate the diluted EPS for Halium Company for the year ended 31st March 2016.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Best Practices

Authors: Steven M Bragg

7th Edition

1118404149, 9781118404140

More Books

Students also viewed these Accounting questions