Darlinghurst Entertainment Ltd. (DEL) has the following selected information
Darlinghurst Entertainment Ltd. (DEL) has the following selected information for the year ended December 31, 2015.Comprehensive income for the year was $8,475,000 with other comprehensive income of $1,475,000.Common shares on January 1, 2015, issued 9,200,000; outstanding 9,000,000. On March 31, 2015, DEL issued 400,000 shares for net proceeds of $856,000.On July 1, 2015 DEL issued 10 year convertible 3% debentures of $4,000,000 at a market yield of 5%. Interest is payable semi-annually at July 1 and January 1. Each $100 denominated bond is convertible into 7 common shares at the behest of the bond holder effective for the calendar years 2018 through 2020 and is convertible to 10 common shares for each $100 bond from 2021 to maturity.DEL has a fully vested compensatory stock option plan entitling each option holder to purchase 5 DEL shares until January 1, 2018 at a price of $16 per share. There were 400,000 options outstanding at the beginning of the year. On September 30, 2015, 25,000 options were exercised.DEL also has 35,000, $2 cumulative, convertible preferred shares outstanding at the beginning of the year. Preferred shares are convertible into 3 common shares for each convertible preferred share held. There were no preferred share conversions during the year and dividends were one year in arrears.DEL has a tax rate of 30% and the share prices for periods throughout 2015 are as follows: average for the year: $38; beginning of year: $28; end of year: $42; January-September 30: $34.Required:Calculate all EPS disclosures (2 decimal places only) required for the year ended December 31, 2015. Clearly indicate the dilutive effect ranking of each dilutive security.Required:Basic EPS calculations:Individual Dilutions and ranking of dilutive effect:
