Z Ltd has on issue 2 million ordinary shares and 1 million convertible preference shares of $0.50 each. The holders of the preference shares have the right to convert into ordinary shares at the rate of two preference shares for one ordinary share at a future date. The following figures have been extracted from the statement of profit and loss and other comprehensive income of Z Ltd for the year ending 30 June 2024.

Required

Calculate the diluted earnings per share for Z Ltd for the year ending 30 June 2024.

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Profit after income tax Dividends: - Ordinary - Preference $290 000 ($160 000) ($ 20 000) Increase in retained earnings $110 000