Calculate lj pathmarks diluted earnings per share

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Reference no: EM131340342

L.J. Pathmark reported net profit of EUR 250,000 for 2005. The company had 125,000 ordinary shares of EUR 1 and 30,000 convertible preference shares of EUR 40 outstanding during the year. The dividend rate on the preference shares is EUR 2 per share.

Each convertible preference share can be converted into two shares of L.J. Pathmark ordinary shares. During the year no convertible preference shares were converted.

(a) Calculate L.J. Pathmark's basic earnings per share.

(b) Calculate L.J. Pathmark's diluted earnings per share.

Reference no: EM131340342

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