Co urse: FR2202 Finan x .. GEN-CASS-PASTEXAN \Exam Timetables! City \ G Explain how you w %20 %20Financial%20Accounting%20Questions%20-%20January%20201 7%20FINAL.pdf a) Answer the following two questions that relate to Earnings per Share i. Sinbad plc had the same 10 million ordinary shares in issue on both 1 January 20x1 and 31 December 20X1. On 1 January 20X1 the company issued 1,200,000 $1 units of 5% convertible loan stock. Each unit of stock is convertible into 4 ordinary shares on 1 January 20X9 at the option of the holder. The following is an extract from Sinbad plc's income statement for the year ended 31 December 20x1: $000 Profit before interest and tax Interest payable on 5% convertible loan stock Profit before tax Income tax expense (at 30%) Profit for the year 980 920 Required: Calculate the basic and diluted earnings per share for the year ended 31 Decembers 20X1