Page 131 - F2 Integrated Workbook STUDENT 2019
P. 131

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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