AB had 10 million $0.50 ordinary shares in issue at 1 January 2008. On 1 August 2008 AB issued 2 million $0.5 ordinary shares at a premium of $0.30. Throughout the year AB had in issue $2 million 7% convertible bonds redeemable in 2010. The terms of the instrument allow the bondholders to convert every $100 of bonds held to 50 ordinary shares of $0.50. AB's profit available to ordinary shareholders was $3 million for the year ended 31 December 2008. AB pays tax at 30%.
Required:
Calculate the basic and diluted earnings per share for AB for the year ended 31 December 2008.