(a) Talbot Plc has in issue 5 000 000 ordinary shares throughout 2017. During 2015 the company had given senior executives options over 400 000 shares excisable at N$1.10 at any time after May 2018. None were exercised during 2017. The average fair value of one ordinary share during the period was N$1.60. Talbot Plc had made profit after tax of N$ 540 000 in 2017.
Required
What is the basic and diluted earnings per share for the year ended 31st December, 2017 (10 marks) (b) Sinbad Plc had the same 20 million ordinary shares in issue on both 1 January 2017 and 31 December 2017.
On 1 January 2017, the company issued 2 400 000 N$1 units of 10% convertible loan stock. Each unit of stock is convertible into 8 ordinary shares on 1st January 2025 at the option of the holder.
|The following is the extract from Sinbad’s plc statement of profit or loss and other comprehensive income account for the year ended 31 December, 2017. N$ 000 Operating profit 1960 Interest payable on 10% convertible loan stock 120 _ Profit before tax 1 840 Taxation @10% 552 Profit after tax 1 288
Required
What is the basic and diluted earnings per share for the year ended 31 December 2017 (10 marks)