Question: In 2022, XYZ issued, at par, 75 1,000 K.D, 10% bonds, each convertible into 100 ordinary shares. The liability component of convertible bonds was

In 2022, XYZ issued, at par, 75 1,000 K.D, 10% bonds, each

In 2022, XYZ issued, at par, 75 1,000 K.D, 10% bonds, each convertible into 100 ordinary shares. The liability component of convertible bonds was 950 K.D per bond. XYZ had revenues of 24,800 K.D and expenses other than interest and taxes of 7,800 K.D for 2023. (Assume that the tax rate is 40%.) Throughout 2023, 1,900 ordinary shares were outstanding; none of the bonds was converted or redeemed. Required: 1. Compute basic earnings per share for 2023 2. Compute diluted earnings per share for 2023

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