Question
Electro Co has 5,000,000 ordinary shares in issue; 1.2 million shares are held in treasury; there are 1.3 million non-cumulative 5% preference shares with a
Electro Co has 5,000,000 ordinary shares in issue; 1.2 million shares are held in treasury; there are 1.3 million non-cumulative 5% preference shares with a nominal value per share of $1. Average share price is $1.49.
Calculate the Earnings per incremental share (EPIS) for the followings:
1) 5,000,000 employee stock options vesting on 1/1/2022 with a strike price of $0.30
2) 1 warrant attached to each preference share giving the preference shareholder the right to buy an ordinary share at a price of $2
3) Outstanding convertible bonds with a face value of $1,000,000 convertible to 90 ordinary shares per $100 face value. The straight-bond (liability) portion of the convertible bond had a balance on 1/1/20 of $1,007,312 excluding any interest payable. The effective interest rate is 11% annually compounded APR.
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