Question $1($Q$23\mathrm{.}7$ Melville$)$

On $1$ January $2018,$ G plc issued $2$ million of $7\%$ convertible loan stock. The holders of this stock may choose to convert the stock to ordinary shares on $1$ January $2022,2023$ or $2024.$ The number of ordinary shares into which the stock will be converted is as follows:

Date of conversion Number of shares issued

$1$ January $2022400$ shares per $1,000$ of stock

$1$ January $2023420$ shares per $1,000$ of stock

$1$ January $2024440$ shares per $1,000$ of stock

The company$$s profit after tax for the year to $30$ September $2019$ was $2\mathrm{.}2$ million. The comparative figure for the year to $30$ September $2018$ was $2\mathrm{.}4$ million. The company pays tax at $19\%.$

On $1$ October $2017,$ the company$$s issued share capital consisted of $1\mathrm{.}5$ million $12\%$ preference shares of $1$ each and $5$ million ordinary shares of $20$p each. On $1$ April $2019$ the company issued a further $500,000$ ordinary shares at full market price.

The preference dividend was paid in full in both the year to $30$ September $2018$ and the year to $30$ September $2019.$

Required:

a$)$ Calculate basic EPS and diluted EPS for the year to $30$ September $2018.$

b$)$ Calculate basic EPS and diluted EPS for the year to $30$ September $2019.$