A company has in issue 2 million ordinary shares and RM250.000 7% convertible preference shares. One...

Transcribed Image Text:

A company has in issue 2 million ordinary shares and RM250.000 7% convertible preference shares. One preference share can be converted into 1 ordinary share in year x15. The profit after tax for year x7 is RM517,500. Preference dividend in x7 amounted to RM17,500. Required: (a) Compute basic and diluted EPS for x7 (b) Assume that convertible preference shares are issued in July year x7, compute: i. Basic and diluted EPS for x7 ii. Basic and diluted EPS for x8, assuming profit after tax is RM617,500 REVIEW QUESTION 5 A company has in issue 6 million ordinary shares and RM300,000 10% convertible debentures. Debentures of RM100 can be converted into 150 ordinary shares. Profit after tax is RM500,000 for x7. Tax rate is 30%. Required: Calculate the basic and diluted EPS. A company has in issue 2 million ordinary shares and RM250.000 7% convertible preference shares. One preference share can be converted into 1 ordinary share in year x15. The profit after tax for year x7 is RM517,500. Preference dividend in x7 amounted to RM17,500. Required: (a) Compute basic and diluted EPS for x7 (b) Assume that convertible preference shares are issued in July year x7, compute: i. Basic and diluted EPS for x7 ii. Basic and diluted EPS for x8, assuming profit after tax is RM617,500 REVIEW QUESTION 5 A company has in issue 6 million ordinary shares and RM300,000 10% convertible debentures. Debentures of RM100 can be converted into 150 ordinary shares. Profit after tax is RM500,000 for x7. Tax rate is 30%. Required: Calculate the basic and diluted EPS.

Answer rating: 100% (QA)

Computing Basic and Diluted EPS for both scenarios Scenario 1 a Basic and Diluted EPS for year x7 Ordinary Shares 2000000 Profit After Tax RM517500 Pr... View the full answer