Alpha Ltd

Statement of profit or loss for the year ended 31.12.2020

$

Turnover 12,500,000

Cost of sales 5,800,000

Gross profit 6,700,000

Administrative expenses 1,300,000

Selling and distribution costs 1,700,000

PBIT 3,700,000

Finance costs 1,000,000

PBT 2,700,000

Taxation 1,200,000

PAT 1,500,000

Transfer to general reserves 300,000

Interim preference dividend 150,000

Interim ordinary dividend 450,000

Final preference dividend 150,000

Retained earnings 450,000

Notes

1. On 1.1.2020 the issued share capital of Alpha Ltd was 4,750,000 7% preference shares of $1 each and the ordinary share capital was $2,100,000 (ordinary share nominal price $0.50).
2. Income tax rate is 12.5%

Required

Calculate the earnings per share (EPS) on a basic and diluted basis in respect of the year ended 31.12.2020 for each of the following independent circumstances:

1. There was no change in the issued share capital of Alpha Ltd during the year ended 31.12.2020
2. Alpha Ltd made a rights issue of $0.50 ordinary shares on 01.07.2020 in the proportion of 2:7 at a price of $0.75. The market price for the ordinary shares was $0.95
3. On 31.12.2020, Alpha Ltd had in issue $2,250,000 12% loan stock convertible from 75% to 95%