Question
Maxi Ltd has ordinary share capital of $32,000,000 comprising shares with a par value of $0.80 each. The company also has in issue 15%
Maxi Ltd has ordinary share capital of $32,000,000 comprising shares with a par value of $0.80 each. The company also has in issue 15% convertible debentures totalling $12,800,000, which can be converted to 40 ordinary shares for every $80 held, as well as 12% convertible debentures totalling $6,200,000, which can be converted to 35 ordinary shares for every $200 held., During the year to June 30, 2021, the company made profit before tax of $18,400,000. The applicable tax rate is 30%. REQUIRED: o Calculate the BEPS for the year ended June 30, 2021. Calculate the incremental EPS for each convertible instrument. Calculate the DEPS for the year ended June 30, 2021.
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