Dome Ltd has 5,000,000 ordinary shares in issue and also had in issue in 2020:
- GH¢1, 000, 000 of 14% convertible loan stock, convertible in three years at the rate of 2 shares for every GH¢10 of stock.
- GH¢2,000, 000 of 10% convertible loan stock, convertible in a year’s time at the rate of 3 shares for every GH¢5 of stock.
- The total earning in 2020 was GH¢1,750,000. The rate of income tax is 35%.
Required:
In accordance with IAS 33: Earnings per Share, Calculate the basic and diluted earnings per share. (4 marks)
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