IAS 33 accounting EPS

The following details pertain to Zeus Limited:

$1 Ordinary shares in issue @ January 1, 2014 100,000 shares
Issue for cash @ $2.30 per share on March 1, 2014 20,000 shares
1 for 4 rights issue on June 1, 2014 @ $2.20

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(Cum rights price @ June 1, 2014 $2.50)

2 for 5 bonus issue on September 1, 2014
Issue for cash @ $2.60 per share on November 1, 2014 20,000 shares
Profit or the year ended December 31, 2014 $ 200,000
EPS for year ended December 31, 2013 $ 1.30

Required

  1. Earnings per share for the year ended December 31, 2014, along with restated EPS for 2013
  2. Calculate the diluted EPS for 2014, assuming that Zeus has $100,000 12% Convertible Loan Stock to be converted in 5 years @ 3 ordinary shares for every $10 of loan stock (assume tax rate of 40%)

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