B. Newport Ltd had an issued share capital at 1 April 2018 of: $400,000 made up of $0.50 shares. 100,000 $1 convertible preference shares receiving a dividend of $5.00 per share: these shares were convertible in 2018 on the basis of 1 ordinary share for 2 preference shares. The company has the following loan capital outstanding: $500,000 5% convertible loans: the loan was convertible in 2018 on the basis of 250 shares for each $2,000 of loan; the tax rate was 30%. Earnings for the year ended 31 March 2019 were $10,000,000 after tax. Required: i. Calculate the diluted EPS for 2019. (6 marks) ii. Outline the need to disclose a diluted EPS figure and on the relevance of this to the shareholders. (4 marks)