QUESTION 4 Given below is the capital structure of a company as on 31.12.2017: Exercise price of the stock option is $ 40 and the fair value of the ordinary shares is $ 60. Effective Tax rate 30%. Convertible Preference Shares are convertible into one ordinary share. Preference dividend is subject to 10% distribution tax. Convertible debentures can be converted into 3 equity shares. Net profit for the year attributable to ordinary shares is $ 200 million.
