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The Directors of Island Victoria Bank at their last Annual General Meeting held on January 19 2020 next earnings of 500,000 for the year ended 2019. The company had ordinary shares of 120,000 which apart value of $0.50 per share; 50,000 shares of $50 par value convertible preference shares outstanding during the year. The preference share dividends was $3 per share. The preference shareholder that holds the convertible shares have the option to convert these into three Class A ordinary shares. During the year no convertible preferential were converted. Required
Problem a) Calculate the Basic EPS and diluted earnings per share for the year ended 30 September 2019.
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