Exercise 15 Net profit $ 1,000,000 Ordinary shares outstanding 1,000,000 Basic earnings per share $ 1.00 100,000 Convertible bonds (each block of ten bonds is convertible into three ordinary shares) $ 10,000 Interest expense for the current year relating to the liability component of the convertible bond Current and deferred tax relating to that interest expense $ 40,000 Calculate diluted earnings per share