Question
Issus Co has 100,000 equity shares in issue throughout the year ended 31 December 20X0. On 1 January 20X0 it issues $200,000 of convertible debt.
Issus Co has 100,000 equity shares in issue throughout the year ended 31 December 20X0. On 1 January 20X0 it issues $200,000 of convertible debt. The finance cost arising in 20X0 in relation to the liability was $13,160. The terms of conversion allow the debt holders to convert each $100 of debt into 12 shares at a future date.
The profit after tax for the year ended 31 December 20X0 is $300,000. The rate of tax is 30%. What is the diluted earnings per share for the year ended 31 December 20X0 in accordance with IAS 33 Earnings Per Share. $2.52
$0.40
$2.49
$3.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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