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Roald Corporation's fiscal year ends at December 31, 2020. Selected financial information for the fiscal year 2020 is shown below. 1) Roald had 200 million

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Roald Corporation's fiscal year ends at December 31, 2020. Selected financial information for the fiscal year 2020 is shown below. 1) Roald had 200 million ordinary shares outstanding on January 1, 2020. On February 1, 2020, it repurchased 40 million shares. On September 1, 2020, It issued 20 million shares. 2) 10 million shares of 8%, $10 par convertible preference shares were outstanding throughout 2020. $8 million dividends were declared on these shares in 2020. Each share of preference shares is convertible into 2.5 shares of ordinary shares. 3) Stock options were outstanding the whole year. These options give the holders the right to purchase 5 million shares of ordinary shares at $15 per share. The average price per ordinary share during 2020 was $25 per share. 4) Roald also had convertible bonds outstanding throughout 2020. The bonds are convertible into 10 million ordinary shares. The carrying amount of the bonds on January 1, 2020 was $60 million with the effective interest rate of 5%. 5) The reported after-tax net income for 2020 was $300 million. 6) The average tax rate for the year was 20%. Requirement 1. What is the weighted average number of shares outstanding? (in millions, round your number to 2 decimal points if necessary) (3 marks) 2. Please calculate the basic EPS (to 3 decimal points). (2 marks) 3. When calculating the diluted EPS, what is the method we use to account for convertible debt and equity security? (1 mark) 4. When calculating the diluted EPS, what is the method we use to account for stock options? (1 mark) 5. When calculating diluted EPS, what is the net increase in the number of shares due to the existence of the stock options? (in millions, round your number to 2 decimal points if necessary) (3 marks) 6. Please calculate the diluted EPS (to 3 decimal points). (4 marks)

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