KLSS Bhd has 10,000,000 issued shares capital of RM2.50 each. During the beginning of the accounting year 2020, the company issued:

RM10,000,000 of 10% convertible loan stock, convertible in four-year time at the rate of 1 share per RM100 loan stock.

RM500,000 of 5% convertible loan stock, convertible in one-year time at the rate of 1 share per RM50 stock.

The total profit after tax were RM6,500,000 and RM7,000,000 for the year ended 2020 and 2021 respectively.

Assumed the tax rate was 30%.

Question:

i) Calculate the basic EPS for 2020 and 2021.

ii) Calculate the diluted EPS for 2020 and 2021.

iii) Comment on dilution effect of EPS for both years.