Question
Leek Cos profit for the year ended 31 December 2018 was 1,500,000. On 1 January 2018 Leek Co had 500,000 ordinary shares outstanding. On 1
Leek Cos profit for the year ended 31 December 2018 was 1,500,000. On 1 January 2018 Leek Co had 500,000 ordinary shares outstanding. On 1 July 2018 there was a full market price issue of 200,000 additional shares. In addition the company has one potentially convertible security: 800,000 of 5% convertible bonds, convertible into a total of 200,000 shares. Assuming a tax rate of 30%, calculate the companys basic and diluted EPS.
For calculating the basic EPS the weighted average number of shares for the year ended 31 December 2018 is ["900,000", "700,000", "600,000"]
The Basic EPS is ["2.50", "1.67", "2.14"]
The restated profit for calculated the Diluted EPS is ["1,512,000", "1,528,000", "1,540,000"]
The number of shares for calculating the Diluted EPS is ["800,000", "900,000", "700,000"]
The diluted EPS is ["1.91", "1.71", "1.88"]
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