The following financial information relates to Puma Limited (Puma): 000 Profits before tax 213,000 Profits tax (42,000) Profits after tax 171,000 Less: Ordinary dividends (48,000) Preference dividends (6,000) Retained profits for the year 117,000 Retained profits at 1 January 2017 78,600 Retained profits at 31 December 2017 195,600 Paid-up ordinary shares at 1 January 2017 120,000,000 shares Paid-up preference shares at 1 January 2017 3,000,000 shares

Required: For each of the following independent assumptions, determine the basic earnings per share and diluted earnings per share (if appropriate) for the year ended 31 December 2017:

(a) Assume that there was no change in the issued share capital in 2017.

(b) Assume that Puma made a rights issue of ordinary shares in proportion of one for every five shares currently held at $2 per share on 1 July 2017. The market price of the ordinary share immediately before the rights issue was $3 per share

(c) Assume that Puma made no new issue of ordinary shares in 2017 but on 1 March 2017, Puma granted stock options to its directors to purchase 1,000,000 ordinary shares at $2 per share in 2019. The average share price of Pumas ordinary shares for the year ended 31 December 2017 was $5.