You are given the following information in respect of Gunnamatta Ltd for the year ending 30...

 

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You are given the following information in respect of Gunnamatta Ltd for the year ending 30 June 2022. Earnings for the year ending 30 June 2022 $70 000 000 Fully paid ordinary shares at 1 July 2021 75 000 000 On 1 May 2022, there is a 1-for 3 rights issue. The price of the right is $1.00. The last sale price per share before the rights issue is $2.50. 10 million options are issued on 30 June 2020, exercisable at $2.00 per option on or before 30 June 2025. The holder of each option has the right to purchase one share. In July 2021, there are 2 million, 10 per cent, convertible bonds on issue at the face value. The face value is $2.50. Interest is paid on 1 September and 1 March each year. Each convertible bond is convertible into one fully paid ordinary share on 1 May 2022 and 1 May 2025. The company tax rate is 40% and the average share price for the year was $2.50. (a) Compute basic earnings per share for year ending 30 June 2022. (b) Determine diluted earnings per share for the year ending 30 June 2022. You are given the following information in respect of Gunnamatta Ltd for the year ending 30 June 2022. Earnings for the year ending 30 June 2022 $70 000 000 Fully paid ordinary shares at 1 July 2021 75 000 000 On 1 May 2022, there is a 1-for 3 rights issue. The price of the right is $1.00. The last sale price per share before the rights issue is $2.50. 10 million options are issued on 30 June 2020, exercisable at $2.00 per option on or before 30 June 2025. The holder of each option has the right to purchase one share. In July 2021, there are 2 million, 10 per cent, convertible bonds on issue at the face value. The face value is $2.50. Interest is paid on 1 September and 1 March each year. Each convertible bond is convertible into one fully paid ordinary share on 1 May 2022 and 1 May 2025. The company tax rate is 40% and the average share price for the year was $2.50. (a) Compute basic earnings per share for year ending 30 June 2022. (b) Determine diluted earnings per share for the year ending 30 June 2022.