Company A 2 × 20-year attributable to ordinary shareholders of the net profit of 355 million yuan, the beginning of the number of common shares outstanding 10,000 shares, the number of ordinary shares during the year has not changed.
2 × 19 years by January 1 per 100 yuan face value of 100 million copies issued convertible bonds, the issue price of 100 million yuan, no distribution costs.
The bonds for a period of three years and a coupon rate of 6% and interest payments every year on December 31. A year later bond issue convertible into common shares, 2 × 20 year bonds that have not been converted.
Conversion price of $ 10 per share, or 100 yuan per bond convertible into 10 ordinary shares of $ 1 par value. Bond interest is not eligible for capitalization, directly through profit or loss, income tax rate is 25%.
Similar assumptions do not have the bond conversion option market rate of 9%, is known (P / A, 9%, 3) = 2.5313, (P / F, 9%, 3) = 0.7722.
A company 2 × 20 diluted annual earnings per share () yuan / share.
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2 × 20 annual basic earnings per share = 35500 ÷ 10000 = 3.55 (RMB / share), the fair value of 2 × 19 on January 1 of the liability component of the bond = 10000 × 6% × (P / A, 9% , 3) + 10000 × (P / F, 9%, 3) = 9240.78 (million),
2 × 20 on January 1 of the bonds at amortized cost = 9240.78 × (1 + 9%) - 10000 × 6% = 9472.45 (million),
Suppose the increased net conversion = 9472.45 × 9% × (1-25%) = 639.39 (million),
Suppose conversion increased number of ordinary shares = 10000 ÷ 10 = 1000 (shares),
EPS incremental shares = 639.39 ÷ 1000 = 0.64 (RMB / share),
EPS increment Unit less than the basic EPS, convertible bonds with dilution,
diluted EPS = (35500 + 639.39) ÷ ( 10000 + 1000) = 3.29 ( yuan / share).