PART B QUESTION 1 Fabreko Berhad is a construction company with huge potential for business expansion. In 2018, the company's net income was RM4.8 million and corporate tax rate was 28 percent. It is also holding RM6,000,000 worth of convertible bonds at 8 percent interest that are convertible at par value into 200 shares of stock. As a financial analyst, you are asked to prepare some information for the company's shareholders. FABREKO BERHAD Partial Statement of Financial Position as at December 31, 2018 RM Preferred shares at 6% 1,500,000 Common stock, par value RM0.50 (Authorized 20,000,000 shares and issued 5,000,000 shares) 2,500,000 Capital contributed in excess of par 1,800,000 Retained earnings 2,700,000 Treasury stock (400,000 shares) (200,000) Total shareholders' equity 8,300,000 a) Compute the basic and diluted eamings per share and book value per share for the year ended 2018. (8 marks) b) Comment on the different pattern of diluted earnings per share as compared to diluted book value per share after the conversion of bond. (2 marks)