On January 1, 2018 Orion Company Limited had 7,00,000 shares to continue its business. On April 1, 2018 the company issued an additional 3,00,000 shares for cash . All 10,00,000 shares were outstanding on December 31.2016. Orion Company Limited also issued Tk.7,00,000 of 20 years 8% convertible bonds at par on August 1,2018 . Each Tk.1000 bond converts to 50 shares common at any interest date. None of the bonds have been converted to date. Orion Company Limited is preparing its annual report for the fiscal year ending December 31, 2018. The annual report will show earnings per shares ending figures based upon a reported after tax net income of Tk.15,40,000 ( The tax rate is 30%) Required: Compute the Basic earnings per share & Diluted earnings per share.
On January 1, 2018 Orion Company Limited had 7,00,000 shares to continue its business.
On April 1, 2018 the company issued an additional 3,00,000 shares for cash . All
10,00,000 shares were outstanding on December 31.2016. Orion Company Limited also
issued Tk.7,00,000 of 20 years 8% convertible bonds at par on August 1,2018 . Each
Tk.1000 bond converts to 50 shares common at any interest date. None of the bonds have
been converted to date. Orion Company Limited is preparing its annual report for the
fiscal year ending December 31, 2018. The annual report will show earnings per shares
ending figures based upon a reported after tax net income of Tk.15,40,000 ( The tax rate
is 30%)
Required: Compute the Basic earnings per share & Diluted earnings per share.
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