Question
COVID Ltd reported a net income after tax of $2 850 000 for the year ended 30 June 2019. The capital structure of COVID Ltd
COVID Ltd reported a net income after tax of $2 850 000 for the year ended 30 June 2019. The capital structure of COVID Ltd follows:
|
| 30 June 2018 | 30 June 2019 |
| Ordinary shares | 500 000 | 500 000 |
| Convertible preference shares ($3 dividend per share; convertible to 10,000 shares) | 10 000 | 10 000 |
| 8% Convertible notes ( convertible to 30,000 ordinary shares) | $ 1000 000 | $ 1000 000 |
COVID Ltd paid its preference shareholders during the year and there are non-dividends in arrears. All potential ordinary shares were outstanding on 1 July 2018. The company's tax rate is 30%.
Given that basic earnings per share are 570 cents, what are the diluted earnings per share for COVID Ltd?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started