Calculate b-two basic and diluted earnings per share figures

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Reference no: EM131967483

Problem

B2, a publicly quoted company, has 750,000 ordinary shares of $4 each in issue throughout its financial year ended 31 March 2014.

The following are the other particulars:

- 1 July: New issue of 250,000 ordinary shares at full market price;

- 30 September: Repurchase of 100,000 shares at full market price;

- 1 November: Bonus issue made of 2 for 5

- $4,000,000 12% convertible loan notes. Each $5 loan note is convertible into two ordinary shares.

The statement of comprehensive income of B2 for the year ended 31 March 2015 reports a net profit after tax of $928,500. Tax on profits is 30%. The average market price of B2 ordinary shares was $8 for the year ended 31 March 2015.

Required:

Calculate B2 basic and diluted earnings per share figures for the year ended 31 March 2015.

Reference no: EM131967483

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