AB had 10 million €0.50 ordinary shares in issue at 1 January 20X7. On 1 August 20X7 AB issued 2 million €0.50 ordinary shares at a premium of €0.30. Throughout the year AB had in issue €2 million 7 per cent convertible bonds redeemable in 20X9. The terms of the instrument allow the bondholders to convert every €100 of bonds held to 50 ordinary shares of €0.50. AB’s profit available to ordinary shareholders was €3 million for the year ended 31 December 20X7. AB pays tax at 30 per cent.

Required:

Calculate the basic and diluted earnings per share for AB for the year ended 31 December 20X7.