Flagstaff Plc has the following potentially diluting securities outstanding for the year ended 30 June 2014:
£200 000,6.5%,convertible note (10 000 ordinary shares)
£200 000,6.5%,convertible preference shares (10 000 ordinary shares)
10 000 employee options convertible to one ordinary share (exercise price £2.50; average market price during the year was £2.70)
50 000 executive options convertible to one ordinary share (exercise price £4.50)
Basic EPS for the year ended 30 June 2014 is calculated at £1.20 per share.
Rank the above securities in the order of most dilutive to least dilutive potential ordinary shares that is in accordance with IAS 33.

Question

Quizplus · Accepted Answer

The Answer of Flagstaff Plc has the following potentially diluting securities outstanding for the year ended 30 June 2014:
£200 000,6.5%,convertible note (10 000 ordinary shares)
£200 000,6.5%,convertible preference shares (10 000 ordinary shares)
10 000 employee options convertible to one ordinary share (exercise price £2.50; average market price during the year was £2.70)
50 000 executive options convertible to one ordinary share (exercise price £4.50)
Basic EPS for the year ended 30 June 2014 is calculated at £1.20 per share.
Rank the above securities in the order of most dilutive to least dilutive potential ordinary shares that is in accordance with IAS 33.

Flagstaff Plc Has the Following Potentially Diluting Securities Outstanding for the Year