What is the number of incremental ordinary shares

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Question - Information relating to the capital structure of Helpful Company at December 31, 2020 and 2021, is as follows: Ordinary shares 110,000 shares Convertible preference shares 20,000 shares 10% Convertible bonds (issued in 2006) P1,200,000 Shares options to purchase 20,000 shares at P15. Market price of Helpful shares was P22 on December 31, 2021, and averaged P20 during the year. No value was assigned to the share options. Helpful Company paid dividends of P5 per share on its preference shares. The preference shares is convertible into 40,000 shares of ordinary shares. The 10% convertible bonds are convertible into a total of 18,000 shares of ordinary shares. The net income for the year ended December 31, 2021, is P650,000. Assume that the income tax rate is 30%.

1. What is the basic earnings per share?

2. What is the number of incremental ordinary shares?

3. What is diluted earnings per share?

Reference no: EM132951778

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