Calculate the diluted EPS

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Question - In 20x7 Ben Corporation had a basic EPS of $0.75 based on earnings of $150,000 and 200,000 ordinary $1 shares. It also had in issue $50,000 15%convertible loan stock which is convertible in two years' time at the rate of 4 ordinary shares for every $5 of stock. The rate of tax is 25%. Calculate the diluted EPS.

Reference no: EM132788124

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