Study the date given below :
Net profit for the year ending 31-12-17 after preference dividend and tax → Rs. 1,00,000
No. of equity shares as on 1-1-2017 → 50,000
No. of 12% convertible debentures of Rs. 100 each → 1,00,000
Each debenture is convertible into 10 equity shares. The tax rate applicable to the company is 30%.
The diluted earning per share will be
1
Rs. 3.06
2
Rs. 2.00
3
Rs. 3.68
4
Rs. 4.40