year, On 2 January 2021, Lada Berhad issued 10- RM3,000,000 face value, 6% bonds, at par....

 

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year, On 2 January 2021, Lada Berhad issued 10- RM3,000,000 face value, 6% bonds, at par. Each RM1,000 bond is convertible into 15 ordinary shares of Lada Berhad. Lad Berhad's net income in 2021 was RM250,000, and its tax rate was 24%. Interest expense on the liability component in 2021 was RM210,000. The company had 100,000 ordinary shares outstanding throughout 2021. None of the bonds were converted in 2021. Required: (i) Compute diluted earnings per share for 2021. (ii) Assuming the same facts as above, except that RM1,000,000 of 6% convertible preference shares were issued instead of the bonds. Each RM100 preference share is convertible into 5 ordinary shares of Lada Berhad. Compute dilutedearnings per share for 2021. (3 marks) (3 marks) URGENT year, On 2 January 2021, Lada Berhad issued 10- RM3,000,000 face value, 6% bonds, at par. Each RM1,000 bond is convertible into 15 ordinary shares of Lada Berhad. Lad Berhad's net income in 2021 was RM250,000, and its tax rate was 24%. Interest expense on the liability component in 2021 was RM210,000. The company had 100,000 ordinary shares outstanding throughout 2021. None of the bonds were converted in 2021. Required: (i) Compute diluted earnings per share for 2021. (ii) Assuming the same facts as above, except that RM1,000,000 of 6% convertible preference shares were issued instead of the bonds. Each RM100 preference share is convertible into 5 ordinary shares of Lada Berhad. Compute dilutedearnings per share for 2021. (3 marks) (3 marks) URGENT

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