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financial reporting Maju Bhd has the following balances at 1 September 2020: RM'000 12,000 Ordinary share capital (consists of 8,000,000 ordinary shares) 10% cumulative convertible
financial reporting
Maju Bhd has the following balances at 1 September 2020: RM'000 12,000 Ordinary share capital (consists of 8,000,000 ordinary shares) 10% cumulative convertible preference shares (consists of 4,000,000 preference shares) 9% convertible loan notes 4,000 2,000 Conversion rate for each convertible instrument: (1) Eight preference shares are convertible to one ordinary share; (ii) RM1,000 loan notes are convertible into 250 ordinary shares. On 1 September 2020, Maju Bhd issued options to senior executives to subscribe 600,000 ordinary shares at RM3.40 cach. These options are exercisable on or before 31 August 2023. The profit after tax for the year ended 31 August 2021 was RM6,388,000. At 30 August 2021, Maju Bhd declared half-year preference dividend and 8% ordinary dividend. The average market value of one ordinary share of Maju Bhd during the year ended 31 August 2021 was RM3.70. The tax rate is 30%. Required: Calculate the company's basic and diluted earnings per share for the year ended 31 August 2021. [10 Marks Step by Step Solution
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