ABC Ltd. had 500.000 ordinary shares and 50.000 preferred shares outstanding on 1 July 2015. On 1 January 2016, the company issued an additional 100.000 ordingary shares and 50.000 preferred shares for cash. On 1 May 2016, ABV acquired 30.000 of its ordinary shares.
Determine the weighted average number of ordinary shares for the reporting period ended 30 June 2016.
Assume ABC issued 10-year, EUR 3.000.000 face value, 4% bonds on 1 July 2015 at par, with interest payable annually. Each EUR 1.000 bond is convertible into 16 ordinary shares of ABC. ABC's operating income for the reporting period was EUR3.100.000. The company's average tax rate was 30%, and its marginal tax rate was 35%. Total interest expense on all liabilities was EUR300.000. None of the bonds were converted during the reporting period. The company determines its profit attributable to preferred shareholders for the reporting period as EUR 200.000.
Compute basic earning per share for the reporting period ended 30 June 2016
Compute diluted earning per share for the reporting period ended 30 June 2016