You have been asked to calculate the basic and diluted earnings per share figures for Al Rihab Company. The following information are valid by the end of 2019: There were 2,900,000 shares outstanding at the beginning of 2019. The company has preference share capital of $7,500,000 at the beginning of 2019. These were 8%, cumulative, convertible preference shares with $3 par value per share. Each preference share is convertible into THREE ordinary shares. The conversion rate must be adjusted for any share dividend or share split occurring during the year. On May 1, 2019, 300,000 preference shares have been converted into ordinary shares. Another 300,000 shares have been repurchased at cost on the same date. The remaining shares
