Question #1 A. Halium Company issued 400,000 $100 6% convertible loan notes on 1 April 2015. The company has in issue 50M $1 ordinary shares. Interest is payable annually in arrears on 31 March each year. The loan notes can be converted to equity shares on the basis of 20 shares for each $100 loan note on March 2018 or redeemed at par for cash on the same date. The debt component of the loan is $37,792M and a similar loan with no conversion right would be at 8% interest. The carrying amount for the loan as at 31 March 2016 is $38,415M with a finance cost of $3.023M. The company's tax rate is 20% and the earnings for the period is $14.327M a (12 marks) Calculate the diluted EPS for Halium Company for the year ended 31st March 2016. Question #1 A. Halium Company issued 400,000 $100 6% convertible loan notes on 1 April 2015. The company has in issue 50M $1 ordinary shares. Interest is payable annually in arrears on 31 March each year. The loan notes can be converted to equity shares on the basis of 20 shares for each $100 loan note on March 2018 or redeemed at par for cash on the same date. The debt component of the loan is $37,792M and a similar loan with no conversion right would be at 8% interest. The carrying amount for the loan as at 31 March 2016 is $38,415M with a finance cost of $3.023M. The company's tax rate is 20% and the earnings for the period is $14.327M Calculate the diluted EPS for Halium Company for the year ended 31st March 2016. (12 marks) B. On 1 October 2019, Etta Co had 25 million equity shares of 50 cents each. No new shares were issued during the year ended 30 September 2020. However, on that date, there was an outstanding share option to purchase 2 million equity shares at $1.20 each. The average value of equity shares during the year to September 30, 2020, was $3. Etta's profit after tax for the year-end was $1,550,000. Calculate the basic and diluted earnings per share for Etta. (8 marks) C. The profit after tax for Barstead for the year ended 30 September 2009 was $15 million. At 1 October 2008 the company had in issue 36 million equity shares and a $10 million 8% convertible loan note. The loan note will mature in 2010 and will be redeemed at par or converted to equity shares on the basis of 25 shares for each $100 of loan note at the loan-note holders' option. On 1 January 2009 Barstead made a fully subscribed rights issue of one new share for every four shares held at a price of $2.80 each. The market a price of the equity shares of Barstead immediately before the issue was $3.80. The earnings per share (EPS) reported for the year ended 30 September 2008 was 35 cents. Barstead's income tax rate is 25%. Page 1 of 3 Required: Calculate the (basic) EPS figure for Barstead (including comparatives) and the diluted EPS (comparatives not required) that would be disclosed for the year ended 30 September 2009. (10 marks)