The following information of Shark Ltd for the year ended 31 December 2019 is available:...
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The following information of Shark Ltd for the year ended 31 December 2019 is available: Profit before tax Income tax expense Profit for the year Additional information 2019 N$ 101 389 (28 389) 73 000 2018 N$ 29 167 (8 167) 21 000 1. the capital structure of Shark Ltd was as follows at 31 December 2018 (no issues during 2018): Ordinary shares (50 000 shares issued at N$6 each) 11% preference shares (nominal value of N$1 each) 15% convertible debentures (nominal value of N$1 each) N$ 300 000 30 000 100 000 2. All debentures are convertible on 1 July 2019 at the option of Shark Ltd on the following basis: one ordinary share will be issued for every two debentures held and interest on debentures will only accumulate until 30 June 2019. The convertible debentures will only accumulate until 30 June 2019. The convertible debentures were issued on 1 July 2016. Similar debentures without conversion rights bear interest at 17% per annum. 3. Preference dividends for the years ended 31 December 2019. 4. Assume a tax rate of 28%. Required: Calculate the basic and diluted EPS of Shark Ltd for the year ended 31 December 2019. (20 marks)
The following information of Shark Ltd for the year ended 31 December 2019 is available:
Profit before tax Income tax expense Profit for the year
Additional information
2019 N$
101 389 (28 389) 73 000
2018 N$
29 167 (8 167) 21 000
1. the capital structure of Shark Ltd was as follows at 31 December 2018 (no issues during 2018):
Ordinary shares (50 000 shares issued at N$6 each) 11% preference shares (nominal value of N$1 each) 15% convertible debentures (nominal value of N$1 each)
N$
300 000
30 000 100 000
2. All debentures are convertible on 1 July 2019 at the option of Shark Ltd on the following basis: one ordinary share will be issued for every two debentures held and interest on debentures will only accumulate until 30 June 2019. The convertible debentures will only accumulate until 30 June 2019. The convertible debentures were issued on 1 July 2016. Similar debentures without conversion rights bear interest at 17% per annum.
3. Preference dividends for the years ended 31 December 2019.
4. Assume a tax rate of 28%.
Required:
Calculate the basic and diluted EPS of Shark Ltd for the year ended 31 December 2019. (20 marks)
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