Z Berhad's profit after tax and non-controlling interest for the year ended 31 December 2021 is...

 

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Z Berhad's profit after tax and non-controlling interest for the year ended 31 December 2021 is RM50,000,000. Its capital structure consists of 100,000,000 ordinary shares in issue throughout the 2021 financial year. On 1 July 2021, Z Bhd issued RM20,000,000 of convertible unsecured loan stock (CULS) at par. The CULS carries and effective interest rate of 6% per annum and each RM1,000 of CULS is convertible into ordinary shares at the following conversion ratios: On or before 31 December 2022 After 31 December 2022 but on or before 31 December 2023 After 31 December 2023 1,000 shares 900 shares 800 shares At 31 December 2021, none of the CULS has been converted. The income tax rate is 25%. Required: Compute the basic EPS and the diluted EPS for Z. Bhd for the year ended 31 December 2021. Z Berhad's profit after tax and non-controlling interest for the year ended 31 December 2021 is RM50,000,000. Its capital structure consists of 100,000,000 ordinary shares in issue throughout the 2021 financial year. On 1 July 2021, Z Bhd issued RM20,000,000 of convertible unsecured loan stock (CULS) at par. The CULS carries and effective interest rate of 6% per annum and each RM1,000 of CULS is convertible into ordinary shares at the following conversion ratios: On or before 31 December 2022 After 31 December 2022 but on or before 31 December 2023 After 31 December 2023 1,000 shares 900 shares 800 shares At 31 December 2021, none of the CULS has been converted. The income tax rate is 25%. Required: Compute the basic EPS and the diluted EPS for Z. Bhd for the year ended 31 December 2021.

Answer rating: 100% (QA)

Basic EPS is perfectly s... View the full answer