Question Five The net profit after tax for AB Limited for the year ended 31/12/2023 was...

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Question Five The net profit after tax for AB Limited for the year ended 31/12/2023 was K125 000 and the company and 1000 000 ordinary shares of K1 each. On 1/5/2023 the company issued 200 000 ordinary shares as bonus issue. The company has 10% convertible debt of K2 500 000. If the bondholders can convert to equity shares on the basis of K2 for very share. 3 Required to compute a) Basic EPS (1 mark) b) Diluted EPS (3 marks) c) Why is it important to distinguish between basic EPS and DEPS wen making investment (4 marks) Question Five The net profit after tax for AB Limited for the year ended 31/12/2023 was K125 000 and the company and 1000 000 ordinary shares of K1 each. On 1/5/2023 the company issued 200 000 ordinary shares as bonus issue. The company has 10% convertible debt of K2 500 000. If the bondholders can convert to equity shares on the basis of K2 for very share. 3 Required to compute a) Basic EPS (1 mark) b) Diluted EPS (3 marks) c) Why is it important to distinguish between basic EPS and DEPS wen making investment (4 marks)