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    Diluted EPS including effects of options granted to directors

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    Calculate the diluted EPS by using the following information for the year ended 31 May 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

    Share options have been granted to directors giving them the righ to subscribe for ordinary shares between 2009 and 2011 at $1.2 per share. There were 2,000,000 options outstanding at 31 May 2008.

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    The expert examines diluted EPS including effects of options granted to directors.