The Cévennes group reports, for the year, a profit attributable to ordinary equity holders of 3,000,000 (in euros) for a weighted average of 2,500,000 units shares. Three instruments, outstanding all year, are to be examined: convertible preference shares (dividends of 210,000 removed, 150,000 units shares), options (100,000 units incremental shares, with no effect on the numerator) and a convertible bond (interest of 150,000 removed after tax, 250,000 units shares). Calculate the incremental earnings per share of the convertible preference shares, then diluted earnings per share, the instruments being included by increasing incremental earnings. Round earnings per share to two decimals (case convention).
- Profit attributable to ordinary equity holders
- 3,000,000
- Weighted average number of ordinary shares
- 2,500,000
- Interest on the bond removed, after tax
- 150,000
- Shares arising from conversion of the bond
- 250,000
- Dividends on the convertible preference shares
- 210,000
- Shares arising from conversion of the preference shares
- 150,000
- Incremental shares from the options
- 100,000