Shujaa ltd has in issue 25,000 4% debentures with a nominal value of ksh 1.00. The debentures
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Question:
Shujaa ltd has in issue 25,000 4% debentures with a nominal value of ksh 1.00. The debentures are convertible to ordinary shares at a rate of 1:1 at any time until 2021.The entity's management receives a bonus based on 1% profit before tax.
Shujaa ltd's results for 2021 showed a profit before tax of ksh80,000 and a profit after tax of 56,000 (tax rate is 30%).
Required:
a) Calculate the earnings for the purpose of dilutive EPS (10 marks)
b) Discuss the various components processes in business analysis (10 marks)
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