# IAS 33 Earnings per Share part 3 (Example 4)

1. says

can someone please help me. I am really confused as to how the rights fraction is calculated

• says

How many shares did you have BEFORE the rights issue and what was the market price? So your investment was worth how much?

Now, how many new shares did you buy through the rights issue and how much did they cost? So your investment has gone up by how much?

So now you have how many shares? And what are they / your investment worth?

So that means that each of your existing shares is worth how much?

Ah! Right! So what you’re telling me is that the market price of your shares BEFORE the rights issue divided by the theoretical per share price AFTER the rights issue is the same as the rights fraction! Is that so?

Sorry, you had a question – what was it you were asking?

2. says

the last year as restated figure.. 60c * (the reciprocal of bonus issue i.e)6/7 *( the reciprocal of rights issue I.e) 2.7777/3 which gives 47.61? Is that correct?

3. says

sorry seems i have been using 2.7 rather than 2.78. but am still struggling with how to arrive at 1800000

4. says

hello mike , just wondering how you got the 1800,000 no of shares and i have been punching this into the calculator 730000*2/12*7/6*3/2.78 and it keeps giving me 157716 rather than 153300 which your answer states! just wondering if you have done something which i am missing thanks!

5. says

I know y am stressed? but u, why? u don’t hav an exam. All points noted, but wasn’t whining.

6. says

Is it possible to appeal to the humane side of Mike & Admin? Please giv us/me IAS 39, Know u have it, can’t have not lectured it. Please? u r such wonderful people!

• says

@ faip3 you can appeal to any side you want…..
you are naive though to think that tutors teach everything that is in the notes!!
You are getting all these lectures free, so appreciate it! Even students who sit in the class and pay for it, are NOT taught certain syllabus areas, there is a limit what can be taught in 5 days!
so this is HOME Study! so, I am afraid, it’s time you learn how to read study text and notes and stop whining

It was said many times, what you see is what you get
can’t upload something that does not exist.

7. success says

how did he get 2.78 from in the fraction. Why is it not 9/7

• says

@success, 9/t would be the fraction if it had been a BONUS issue.

For a rights issue, you must go through the process shown by MissA

• says

@MikeLittle, That should, of course, be 9/7, not 9/t!

• says

video is fine, before you press play
wait for it to load if you are on slow connection,

8. says

Hi – no, it shouldn’t make a difference to your chances of success in the exam. But it does illustrate the point that, by rounding, you do lose that element of accuracy!

9. says

very simple and precise calculation of bonus issue is given in Kaplan Book, why so complicated calculation here, is this gonna make any difference is getting marks in exam?

10. says

47.62= 60c*6/7*2.777777778/3

actually what he did is when he have took the figure of 2.7 but mulitplied it by 2.777777778. thats y there is difference.
hope it will make sense to you

11. says

could you please tell me how did the 47.62C at about the end of this vedio come from?
it seems neither 60C*730,000/1,440,300 nor 60*1,000,000/1,440,030.

thanks a lot

• says

I’m also struggling to see where the 46.62 at the end has come from.

As in Example 3, this is the reciprocal x the disclosed EPS, but for example 4 this would mean 60c x either the reciprocal of the rights and or bonus and neither of those options or an average comes to 46.62??

Thanks