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Compute the diluted earnings per share

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Reference no: EM132544918

Average market price of ordinary shares $25 per share

Net Income for the year $1,200,000

8% convertible bonds issued at par ($1,000 per bond); $2,000,000 each bond is convertible into 30 shares of ordinary shares; the liability component of the bonds is $1,800,000 based on a market rate of 9% 6% convertible, cumulative preference shares, $100 $4,000,000 par value; each share is convertible into 3 shares of ordinary shares.

Ordinary shares, $10 par value $6,000,000 Tax rate for 2019 40%

Question 1: Compute the diluted earnings per share.

Reference no: EM132544918

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