Question: QUESTION 3 (a) XYZ Ltd has calculated basic earnings per share of $18 for the year 2021 based on draft financial statement yet to be

QUESTION 3 (a) XYZ Ltd has calculated basic earnings per share of $18 for the year 2021 based on draft financial statement yet to be published. The CEO is unhappy as it goes down from previous year. Market desires a rise in EPS at least to some extent from previous year. XYZ Ltd has a convertible bond in its capital structure and the CFO advised that if the bond is converted, it will bring some positive impact on EPS due to anti-dilution effect. Required: Briefly explain the anti-dilution effect on EPS and clarify the position of CFO. with Oro Itd. Both parties commit

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