Cairo Ltd. has 2,000,000 common stock were outstanding at January 1, 2015. The company also has 10% $5M convertible bonds. Bondholders can convert these bonds as follow; 80 ordinary shares for every $2,500 bond. On Aug 31, 2015 the company issued 800,000 common stock. The profit after tax at December 31, 2015 is $8M and the tax rate is 25%. (1) Calculate the Basic Earnings Per Share (ii) Calculate the Diluted Earnings Per Share Date # of Shares Issued/Outstanding Weighted Avg Shares

Cairo Ltd. has 2,000,000 common stock were outstanding at January 1, 2015. The company also has 10% \$5M convertible bonds. Bondholders can convert these bonds as follow; 80 ordinary shares for every $2,500 bond. On Aug 31, 2015 the company issued 800,000 common stock. The profit after tax at December 31,2015 is $8M and the tax rate is 25%. (i) Calculate the Basic Earnings Per Share (ii) Calculate the Diluted Earnings Per Share (1) Date # of Shares Issued/Outstanding Weighted Avg Shares