SonyaGas Ltd. had 1,365,000 average ordinary shares outstanding during all of 2021. During 2021, SonyaGas also had 85,500 options outstanding with exercise prices of $34 each. The average stock price of SonyaGas during 2021 was $64. This company also had 25,000 shares of preferred stock outstanding ( $1.25 dividend per share) for the entire year, each convertible into 15 shares of common stock. The company has 1,750 bonds with $100 par value and 9% annual interest, convertible into 4 ordinary shares per each bond held. SonyaGas had $2,850,000 net income for the year. The corporate tax rate is 32%. Calculate the following for SonyaGas for 2021(round the figures to avoid decimals):

a) What is the basic EPS share for 2021? (1 Mark)

b) Calculate the weighted average number of shares outstanding for 2021 3 if all dilutive securities are converted into ordinary shares at the beginning of the year? Show all workings. (4 Mark)

c) What is the diluted EPS for 2021? (1 Mark)

Answer rating: 100% (QA)

Given 1365000 average ordinary shares 85500 optio... View the full answer