Question 2: [18 Marks! W Hot Spring Ltd. has the following shares outstanding on December 31, 2010: a. 150,000 fully paid ordinary shares of par value HK$1 each; and b. 20,000, 4% cumulative convertible preference shares of HK$100 each. Each preference share can be converted to 6 ordinary shares starting on June 30, 2015. In 2011, the following events occurred: 1. On April 1, 2011, the company issued 10,000 shares at full market price. 2. On July 1, the new ordinary shares were issued by the way of right in the proportion of one for one at HK$8 per share to the existing ordinary shareholders. The fair value of ordinary shares prior to exercise of the right issue was HK$12. 3. On Oct 1, the company consolidated two shares into one share (a reverse split]. Net profit after tax for the year of 2011 was $280,000. The scal year end is on December 31. Required: Compute basic earnings per share for 2011 in accordance with HKAS 33. Show all your workings. Express your answers in dollar and round to 2 decimal places. [10 marks)