Problem:
Would anyone help me to answer the diluted EPS using the following information - year ended 31 Mar 2008:
Profit after tax: $1,812,000,
ordinary shares of $1 (fully paid) $40,000,000
the average market price for year of ordinary shares $1.5
i) The company issued $20m of 6% convertible loan stock on 1 Mar 2007. The terms of conversion of the loan stock per $200 nominal value of loan stock were:
Conversion date / Number of shares
31 Mar 2009 / 23
31 Mar 2010 / 22
31 Mar 2011 / 21
No loan stock has yet been converted.
ii) The tax rate was 15% on 31 May 2008