Calculate the EPS for Year 4 and the comparative EPS for Year 3. (20 Marks) On 1 January Year 4. Mary had 5 million ordinary shares in issue. The following transactions in shares took place during the year. 1 February A 1 for 5 bonus issue 1 April Al for 2 rights issue at $1 per share. The market price of the shares prior to the rights issue was $4. 1 June An issue at full market price of 800,000 shares. In Year 4 Mary made a profit before tax of $3,362,000. It paid ordinary dividends of $1,200,000 and preference dividends of $800,000 on 10% convertible preference shares. These convertible preference shares were issued at the start of Year 4 and are convertible into ordinary shares at the following rates. On 31 December Year 7 15 shares for every $100 of preference shares. On 31 December Year 8 5 shares for every $100 of preference shares. Outstanding share options on 500.000 shares have also existed for a number of years These can be exercised at a future date at a price of $3 per share. The average market price of shares in Year 3 was $4 and in Year 4 was $5. On 1 April Year 4 Mary issue $1,000,000 convertible 7% bonds. These are convertible into ordinary shares at the following rates. On 31 December Year 6 30 shares for every $100 of bonds On 31 December Year 7 25 shares for every $100 of bonds On 31 December Year 8 20 shares for every $100 of bonds Tax rate for Year 4 is 30% The reported EPS for Year 3 was $0.32