Question: It is urgent. Show all workings. no wrong answer please PUZZLE 11.2 DILUTED EARNINGS PER SHARE Entity A has made a net profit attributable to

 It is urgent. Show all workings. no wrong answer please PUZZLE

It is urgent. Show all workings. no wrong answer please

PUZZLE 11.2 DILUTED EARNINGS PER SHARE Entity A has made a net profit attributable to ordinary shareholders of $2 million for the year to December 31, 20X1. Ten million ordinary shares were outstanding for the entire year. Since January 20X0 there has been $800,000 of 5% convertible loan stock in issue. The terms of conversion are for every $100 nominal value of stock. On June 30, 20X1 June 30, 20X2 June 30, 20X3 120 ordinary shares 150 ordinary shares 140 ordinary shares Assume that interest on loan stock is allowable for tax relief at 30%. Required Calculate basic and diluted earnings per share. (Assume that no conversion takes place in the year.)

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