Supremes Ltd is an entity holding securities that publicly traded. Extracts from the draft statement of profit or loss for the years ended 30 September 2011 and 30 September 2010 given below: Profit from operations Finance costs Profit before tax Income tax expense Profit for the period 2011 $ 62,000,000 (10,000,000) 52,000,000 (15,000,000) 37,000,000 2010 $ 60,000,000 (10,000,000) 50,000,000 (12,500,000) 37,500,000 Before 1 April 2011, the issued share capital of Supremes had been 400 million for a number of years. Then on 1 April 2011 the entity made a rights issue of one ordinary share for every four ordinary shares held at $4 per share. The market value of a Supremes share immediately before the rights issue was $5. On 30 September 2011, Supremes made a bonus issue of one ordinary share for every one ordinary share held at that date. Throughout the year ended 30 September 2011, Supremes had the following potential ordinary shares in issue: 50 million options to buy 100 million shares at $3 per share. The average price of an ordinary share in Supremes for the year ended 30 September 2011 was $5. A $100 million loan with an annual finance cost of 10%. The loan is repayable on 30 September 2013 or convertible into 40 million ordinary shares on that date. The liability component of the convertible loan carried in the statement of financial position as at 1 October 2010 was $85 million and the effective interest rate is 8%. The rate of income tax is 25%. Required: Compute the basic and diluted earnings per share for Supremes Ltd that will publish in the financial statements for the year ended 30 September 2011. You should compute a comparative figure for the basic earnings per share but not for the diluted earnings per share. Supremes Ltd is an entity holding securities that publicly traded. Extracts from the draft statement of profit or loss for the years ended 30 September 2011 and 30 September 2010 given below: Profit from operations Finance costs Profit before tax Income tax expense Profit for the period 2011 $ 62,000,000 (10,000,000) 52,000,000 (15,000,000) 37,000,000 2010 $ 60,000,000 (10,000,000) 50,000,000 (12,500,000) 37,500,000 Before 1 April 2011, the issued share capital of Supremes had been 400 million for a number of years. Then on 1 April 2011 the entity made a rights issue of one ordinary share for every four ordinary shares held at $4 per share. The market value of a Supremes share immediately before the rights issue was $5. On 30 September 2011, Supremes made a bonus issue of one ordinary share for every one ordinary share held at that date. Throughout the year ended 30 September 2011, Supremes had the following potential ordinary shares in issue: 50 million options to buy 100 million shares at $3 per share. The average price of an ordinary share in Supremes for the year ended 30 September 2011 was $5. A $100 million loan with an annual finance cost of 10%. The loan is repayable on 30 September 2013 or convertible into 40 million ordinary shares on that date. The liability component of the convertible loan carried in the statement of financial position as at 1 October 2010 was $85 million and the effective interest rate is 8%. The rate of income tax is 25%. Required: Compute the basic and diluted earnings per share for Supremes Ltd that will publish in the financial statements for the year ended 30 September 2011. You should compute a comparative figure for the basic earnings per share but not for the diluted earnings per share
