QUESTION 1...... Continued
PART D
Ravilob Company Limited had 2,000,000 at $2.50 per share ordinary shares on December 31,
2023. Below are the results of the company's operations for the same year:
Net profit before taxation
Taxation
Net profit after taxation
\$
3,200,000
1,200,000
2,000,000
The following information are also relevant to the company for the same year:
1) The corporate tax rate is 25%
2) The entity had in issue $1,250,000 16% convertible bond that can be converted to 45 ordinary
shares for each $250 nominal value of the loan stock.
3) The entity also had in issue $1,500,000 10% convertible bond that can be converted to 100
ordinary shares for each $150 nominal value of the loan stock.
REQUIRED:
(A) Calculate the BEPS for the year ended December 31, 2023
(B) Calculate the DEPS for the year ended December 31, 2023
(4 marks)
(16 marks)