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The following summarised information is available in relation to 'La Scan', a publicly listed company,I in Australia: Statement of comprehensive...


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 * Acquired on the 1st November 2017

 Analyst expect profits from the market sector in which La Scan's existing operations are based to increase by 6% in the year to 30thJune 2019 and by 8% in the sector of its newly acquired operations.

 On 1st July 2016 La Scan had:

 $12 million of $1 ordinary shares in issue.

 $5 million 8% convertible debentures 2023; the terms of conversion are 40 equity shares in exchange for each $100 of debenture.

 On 1 January 2018 the directors of La Scan were granted options to buy 2 million shares in the company for $1 each. The average market price of La Scan's shares for the year ending 30th June 2018 was $2.50 each.

 Assume an income tax rate of 30% for year 2016,2017 and 2018

 Required:

 (i) Calculate La Scan's estimated profit after tax for the year ending 30 June 2019 assuming the analysts' expectations prove correct;

 (ii) Calculate the diluted earnings per share (EPS) on the continuing operations of La Scan for the year ended 30 June 2018 and the comparatives for 2017.

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The following summarised information is available in relation to 'La Scan’, a publicly listed company,I in Australia: Statement of comprehensive income extracts for years ended 30‘“ June: 2013 201 3'
Continuing Discontinued Continuing Discontinued
$'flflfl $'DCID 5’000 $'flflfl
Profit aiter tax from:
Existing operation goon (T5 t1) ‘ITSU eon Newiy acquired operation-55* 45E] nil

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