3. Biggerbuys plc, made earnings available to ordinary shareholders for the year ended 31 December 2020 of £120,000.  The number of ordinary shares in existence at 1 January 2020 was 900,000.  During the year to 31 December 2020 they did not issue any more ordinary shares, but they did issue £800,000 of 10% convertible loan stock. This loan stock can be convertible into ordinary shares as follows:

 

2021 90 £1 shares for £100 nominal value loan stock

2022 85 £1 shares for £100 nominal value loan stock

2023 80 £1 shares for £100 nominal value loan stock

2024 75 £1 shares for £100 nominal value loan stock

 

Assume where appropriate that the corporation tax is 20%

 

Calculate the diluted EPS for Biggerbuys plc for the year ended 31 December 2020.

Answer rating: 100% (QA)

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