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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

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