Halium Company issued 400,000 $100 6% convertible loan notes on 1 April 2015. The company has in issue 50M $1 ordinary shares. Interest is payable annually in arrears on 31 March each year. The loan notes can be converted to equity shares on the basis of 20 shares for each $100 loan note on March 2018 or redeemed at par for cash on the same date. The debt component of the loan is $37,792M and a similar loan with no conversion right would be at 8% interest. The carrying amount for the loan as at 31 March 2016 is $38,415M with a finance cost of $3.023M. The company's tax rate is 20% and the earnings for the period is $14.327M Calculate the diluted EPS for Halium Company for the year ended 31st March 2016
Halium Company issued 400,000 $100 6% convertible loan notes on 1 April 2015. The company has in issue 50M $1 ordinary shares. Interest is payable annually in arrears on 31 March each year. The loan notes can be converted to equity shares on the basis of 20 shares for each $100 loan note on March 2018 or redeemed at par for cash on the same date. The debt component of the loan is $37,792M and a similar loan with no conversion right would be at 8% interest. The carrying amount for the loan as at 31 March 2016 is $38,415M with a finance cost of $3.023M. The company's tax rate is 20% and the earnings for the period is $14.327M Calculate the diluted EPS for Halium Company for the year ended 31st March 2016
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Halium Company issued 400,000 $100 6%
convertible loan notes on 1 April 2015. The
company has in issue 50M $1 ordinary shares.
Interest is payable annually in arrears on 31
March each year. The loan notes can be
converted to equity shares on the basis of 20
shares for each $100 loan note on March
2018 or redeemed at par for cash on the
same date. The debt component of the loan is
$37,792M and a similar loan with no
conversion right would be at 8% interest. The
carrying amount for the loan as at 31 March
2016 is $38,415M with a finance cost of
$3.023M. The company's tax rate is 20% and
the earnings for the period is $14.327M
Calculate the diluted EPS for Halium
Company for the year ended 31st March 2016
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