Question Solved1 Answer In the year ended 31 December 20X9, there were 12 million ordinary shares in issue. In the year ended 31 December 20X9 the earnings available for ordinary shareholders amounted to INR 5 million. There are 1 million 10% INR 1 convertible loan notes in issue, convertible at the rate of 3 ordinary shares for every INR 4 of notes in the year ended 31/12/20X9 and the rate of company tax is 30%. Required: What is the fully diluted EPS for the year ended 31 December 20X9?

6JHWVV The Asker · Accounting

In the year ended 31 December 20X9, there were 12 million ordinary shares in issue. In the year ended 31 December 20X9 the earnings available for ordinary shareholders amounted to INR 5 million. There are 1 million 10% INR 1 convertible loan notes in issue, convertible at the rate of 3 ordinary shares for every INR 4 of notes in the year ended 31/12/20X9 and the rate of company tax is 30%.

Required:

What is the fully diluted EPS for the year ended 31 December 20X9?

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Calculation of Diluted EPS:- 1. Saving in Interest  of loan :-  INR (10,00,000 * 0.10) = 100,000                                                   =  INR 100,000 * (1 - 0.30 ) = 70,000 2. Increase in Number of Shares:-  &#1 ... See the full answer