QUESTION 4 The following information relates to Leemark Plc: 1. Earnings available to ordinary shareholders for the year ended 31 December 2019 were 80,000 and 72,000 for the previous year (to 31 December 2019). 2 The balance sheet at 31 December 2019 showed 240,000 Ordinary shares in issue. 3 On 1st July 2020, Leemark plc made a 1 for 5 rights issue of ordinary shares. 4. The market price of an ordinary share on this date was 5.20. 5. The rights price is 4.00. Required: a. b. C. Calculate the earnings per share for Leemark Plc for the year ended 31 December 2020. (10 marks) Calculate the restated earnings per share for Leemark Plc for the year ended 31 December 2019 (2 marks) Another company, Pasta Pesto plc, made earnings available to ordinary shareholders for the year ended 31 December 2020 of 120,000. The number of ordinary shares in existence at 1 January 2020 was 900,000. During the year to 31 December 2020 they did not issue any more ordinary shares, but they did issue 800,000 of 10% convertible loan stock. This loan stock can be convertible into ordinary shares as follows: 2020 90 1 shares for 100 nominal value loan stock 2021 85 1 shares for 100 nominal value loan stock 2022 80 1 shares for 100 nominal value loan stock 2023 75 1 shares for 100 nominal value loan stock Assume where appropriate that the corporation tax is 20% Calculate the diluted EPS for Pasta Pesto plc for the year ended 31 December 2020. (10 marks)