The firm had 10 million common stocks in issue for the year ending December 312022. On the 1 January 2023 it had issued ( $ 2 ) million of ( 6 % ) convertible debentures, each ( $ 5.00 ) of debentures can be converted into four common shares on the 1 of January at the option of the holder of the debenture. The firm had profit after tax for the year ended December 31, 2022, of ( $ 1850000 ). The firm pays tax at ( 30 % ) for the year ended. equired: i. Calculate the Basic and diluted EPS for the year 2022 (6 marks) ii. Outline the need to disclose a diluted EPS figure and on the relevance of this to the shareholders (4 marks)

The firm had 10 million common stocks in issue for the year ending December 312022. On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00 of debentures can be converted into four common shares on the 1 of January at the option of the holder of the debenture. The firm had profit after tax for the year ended December 31, 2022, of $1850000. The firm pays tax at 30% for the year ended. Required: i. Calculate the Basic and diluted EPS for the year 2022 (6 marks) ii. Outline the need to disclose a diluted EPS figure and on the relevance of this to the shareholders (4 marks)