Tortellini plc has basic earnings of £3 million for the year ended 30 November 2021 and a weighted average number of shares of 10 million. Tortellini pays corporation tax at 20%. It has a £5m of 6% convertible loan stock that can be converted in 2023 into 24 shares per £100 of loan stock. Calculate the diluted EPS for Tortellini for the year ended 30 November 2021. (5 marks) Show your answer in 3 parts:

(i) The revised earnings

(ii) The revised number of shares

(iii) The diluted EPS, stating your answer to 1 decimal place.

Answer rating: 100% (QA)

Earnings per Share are t... View the full answer