Exercise 15 Net profit Ordinary shares outstanding Basic earnings per share Convertible bonds (each block of ten bonds is convertible into three ordinary shares) Interest expense for the current year relating to the liability component of the convertible bond Current and deferred tax relating to that interest expense Calculate diluted earnings per share $ 1,000,000 1,000,000 $ 1.00 100,000 $ 10,000 $ 40,000