The issued share capital of Edwards ple consists of 800,000 ordinary shares. There are no preference shares. Some years ago, the entity issued EUR 2m of 10 per cent convertible loan stock. The entity’s net income for the year ended 31 March 2010 is EUR 1,280,000. 

(a) Calculate basic EPS for the year ended 31 March 2010. 

(b) Calculate diluted EPS for the year ended 31 March 2010, assuming that the entity pays tax at 30 per cent. 

(c) Rework both of the above calculations, assuming now that the loan stock was not issued ‘some years ago’ but was in fact issued on 1 October 2009.