The finance director of Marina Bhd has correctly calculated the company's basic and diluted earnings per share (EPS) to be disclosed in the financial statements for the year ended 31 March 2020 at 148.2 cents and 119.4 cents respectively. The diluted EPS calculation is after taken into consideration the 5% convertible loan debenture. Upon reviewing these figures, the chief executive officer (CEO) is very much concerned that the market will react adversely knowing that the company's EPS in the near future will be only 119.4 cents, representing a fall of over 19% on the current year's basic EPS. (i) (i) Explain why and what aspect of Marina Bhd's capital structure framework is causing the basic EPS to be diluted by providing the relevant supporting illustrations. (7 marks) Review and comment on the validity of the CEO's remarks and concerns. (5 marks)