Flagstaff Ltd 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 AASB 133
A) executive options, employee options, convertible preference shares, convertible notes
B) executive options, employee options, convertible notes, convertible preference shares
C) employee options, convertible notes
D) employee options, convertible notes, convertible preference shares
Correct Answer:
Verified
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