BUAD 273 Midterm Examination Problems: Show all calculations clearly for full marks. Problem 10 (7 marks). Chaminox Ltd. had earnings before interest and taxes of $500,000, and 200,000 common shares outstanding at the beginning of the year. They had $2,000,000 of 6% convertible bonds, issued at par, outstanding at the beginning of 2021. Interest expense on the bonds is tax deductible. Each $100 bond was convertible into 4 common shares. The marginal tax rate was 30%. On April 30, 2021, $500,000 of the bonds were converted into common shares. The year-end is December 31, 2021. Required (Show your work, round all share calculations to nearest whole number): a) Calculate Chaminox' earnings after interest and taxes for the 2021 fiscal year. (2 marks) b) Calculate the weighted average number of common shares outstanding during the year. (1 mark) c) Compute Chaminox' basic earnings per share. (1 mark) d) Calculate Chaminox' diluted earnings per share. (3 marks)