f u r t h e r f e at u r e s o f c o m pa n y a c c o u n t s Table 7.1 Calculation of earnings per share dilution £'000 Amount of bond Coupon Conversion rate Operating profit Interest on bond Profit before tax Tax at 30% Profit after tax Number of shares Earnings per share Bondnot converted 1,500 10% 400 (150) ______ 250 (75) ______ 175 1.0m 17.5p Bond converted £3.00 400 ­ _____ 400 (120) _____ 280 1.5m 18.7p We have now done enough accounting. It's time to move on to financial analysis, which is what gives us real insight into a company. Before we do