Calculate diluted EPS involving convertible debentures
Not what you're looking for?
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
Purchase this Solution
Solution Summary
This solution calculated the diluted EPS of a company, given profits, ordinary shares and conversion dates.
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.