Page 121 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Earnings per share

What impact will converting a loan into shares have on EPS?

Impact of

convertibles
on DEPS

Impact on Impact on WAV
earnings

Number of shares
 Save interest 
 Pay more tax as a increase
result of interest
saved N.B. Convert at maximum
possible conversion

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