Violet Inc., a publicly listed company, has a year end of September, Year 7. As at the start of the year, it had 2,000,000 common shares outstanding. On October 1, Year 7, $300,000 of 10% convertible debt was issued at par with the following details available: Every $100 of debt can be converted to common shares at the following rates: June 30, Year 9 — 100 shares June 30, Year 10 — 105 shares The after-tax income for the year ended September 30, Year 7, was $800,000. The rate of corporation tax is 26%. 

What is basic EPS for the year ended September 30, Year 7?

Answer rating: 100% (QA)

To calculate the basic earnings per share EPS well use the formul... View the full answer