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Greene Co is preparing its financial statements for the year ended 31 December 208 which will be autharised for issue on 1 March 209. Greene

image text in transcribed Greene Co is preparing its financial statements for the year ended 31 December 208 which will be autharised for issue on 1 March 209. Greene Co made a profit of \$3.5m for the year. At 1 January 20X8, Greene Co had 6 million shares in issue. On 1 May 20X8, Greene Co performed a 2 for 5 rights issue when the market price of a share was $3, resulting in a theoretical ex-rights price of $2.80. On 1 January 20X8, Greene Co issued options over 2 million shares. Each option allows the holder to buy a share for $2.25 on 31 December 209. The markel price of a share at 31 December 208 is $3. How many additional shares need to be included in Greene Co's diluted earnings per share calculation at 31 December 208 in relation to the options? 2.0 million 0 0.5 million 1.5 million

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