Savoie SA has issued options on its own shares: 480,000 units options, each entitling its holder to one ordinary share at an exercise price of 12.5 (in euros). The average market price for the year is 20. The profit attributable to ordinary equity holders is 5,400,000 and the weighted average number of shares is 6,000,000 units; the options have no effect on the numerator. Calculate the incremental shares using the treasury stock method, then diluted earnings per share. Round earnings per share to two decimals (case convention).
- Options outstanding
- 480,000
- Exercise price
- 12.5
- Average market price for the period
- 20
- Profit attributable to ordinary equity holders
- 5,400,000
- Weighted average number of ordinary shares
- 6,000,000