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On seeing these figures, the Chief Executive Officer (CEO), is concerned that the market will react badly knowing that the companys EPS in the near

On seeing these figures, the Chief Executive Officer (CEO), is concerned that the market will react badly knowing that the companys EPS in the near future will be only 1194 cents, a fall of over 19% on the current years basic EPS. Explain the reasons and which aspects of Island Victoria Bank capital structure are causing the basic EPS to be diluted and comment on the validity of the CEOs concerns.

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