Tucson Ltd Reported Basic EPS Was $5 The Share Price on 30 June 2014 Is $21

Tucson Ltd reported basic EPS was $5.70 for the year ended 30 June 2014.It also has the following potential ordinary shares outstanding for the entire period. $$\begin{array} { | l | r | } \hline { \text { Type of potential ordinary shares } } & \text { Incremental EPS } \\\hline \text { Convertible preferred shares (convertible to } 10000 \text { ordinary shares) } & \$ 3.00 \\\hline \text { Convertible notes (convertible to } 30000 \text { ordinary shares) } & \$ 2.00 \\\hline \text { Executive options (exercise price } \$ 20 \text {, average share price } \$ 17 \text { ) } & \text { NA } \\\hline \text { Employee options (exercise price } \$ 15 \text {, average share price } \$ 17 \text { ) } & \text { NA } \\\hline\end{array}$$ The share price on 30 June 2014 is $21.00. Which of the above potential ordinary shares is the most dilutive and least dilutive POS in accordance with AASB 133 Earnings per Share,respectively?

A) employee options; convertible preference shares
B) employee options; convertible notes
C) executive options; convertible preference shares
D) executive options; convertible notes

Correct Answer:

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