Argonne SA is considering two dilutive instruments. A convertible bond would remove 72,000 of interest after tax (in euros) and would give 120,000 units shares. Options, under the treasury stock method, would give 90,000 units incremental shares with no effect on the numerator. Calculate the incremental earnings per share of each instrument, in order to establish the sequence in which they are taken into account.
- Interest on the bond removed, after tax
- 72,000
- Shares arising from conversion of the bond
- 120,000
- Incremental shares from the options
- 90,000