The following information is available for Nivarna Ltd for the year ended 30 June 2020: Net profit after tax and non-controlling interest Ordinary shares (fully paid) Average fair value of ordinary shares for the year $18,160,000 $40,000,000 $1.50 There are 1,600,000 preference shares in issue. The annual dividend is $0.1 per share. Tax rate is 20%. Consider the following independent scenarios concerning potential ordinary shares issued by Nivarna. (1) Share options have been granted to directors giving them the rights to subscribe for ordinary shares between 2022 and 2022 at $1.20 per share. The options outstanding at 30 June 2020 were 2,000,000 in number. (2) The company has 20 million convertible loan stock in issue. The terms of conversion of the loan stock per 200 loan stock at the date of issue (1 July 2016) were: Conversion date No. of shares 30 June 2021 20 30 June 2022 21 30 June 2023 22 The liability portion of the loan stock had a fair value of $20 million and effective interest rate of 6% at issue. (3) The preference shares are convertible and each share can be converted into two ordinary shares. The preference shares can be converted in 2021. (a) Determine the earnings per share for Nivarna for the year ended 30 June 2020. (2 marks) (b) Determine the diluted earnings per shares of Nivarna under each of the scenarios (1) to (3) (18 marks)