- This topic has 14 replies, 6 voices, and was last updated 4 years ago by P2-D2.
- AuthorPosts
- April 29, 2015 at 8:13 am #243211
waffle had share capital of 7.5million in 50c equity shares at october 20×6 . on january 20×7 it made an issue of 4 million shares at full market price immediately followed by a 1 for 3 bonus issye the financial statement at 30 september 20×7 showed profit for the year of 12 million .
what wa sEPS for the year
A 53c
B 73c
C 48c
D 50ctherefore 15000 shares then + 4000*9/12 (jan to sep)+ 18000/3 bonus issue the we get ans D 50c
but doubt is we should do on outstanding bases right
then it should be 15000*3/12 (oct to dec) can you clarify me sir
thank you in advanceApril 29, 2015 at 4:43 pm #24325415,000,000 x 3/12 x 4/3 = 5,000,000
(19,000,000 + 6,333,333) x 9/12 = 19,000,000WANES = 24,000,000
Earnings are 12,000,000
Therefore EPS is 12,000 / 24,000 = 50c per share
Post again if you don’t understand
🙂
April 30, 2015 at 3:13 am #243318thank you sir i got it
April 30, 2015 at 6:03 pm #243418You’re welcome
November 13, 2015 at 8:05 am #282090Ifeomi, it’s been corrected!
October 8, 2019 at 4:29 am #548324can you please explain how do you get this one
(19,000,000 + 6,333,333) x 9/12 = 19,000,0006,333,333?
October 11, 2019 at 2:58 pm #548799Hi,
They had 19,000,000 shares and did a one-for-three bonus issue, so multiply the 19,000,000 by 1/3 to give the 6,333,333.
Thanks
April 9, 2020 at 8:19 am #566908Can you explain please where 4/3 came from in this equation
15,000,000 x 3/12 x 4/3 = 5,000,000
And also the 15 000 000.
Thank you so much
April 11, 2020 at 8:32 pm #567229It is the bonus fraction. They did a 1-for-3 bonus issue. There were 3 shares in issue before and 4 after, hence 4/3.
Thanks
August 31, 2020 at 4:42 pm #582893Hi sir, I have a question here, for the fresh issue of 4000 on 1 Jan, why doesn’t it required to multiply by the bonus fraction?
My workings:
1 OCt x6 15000 x 3/12 x 4/3 = 5000
1 Jan x7 4000
——–
19000 x 9/12 x 4/3 =19000
(bonus1/3) 6333 x 9/12 = 4749.75
————
28749.75Thank you.
August 31, 2020 at 8:46 pm #582916Hi,
You only apply the fraction to the shares that have been in issue previously to take account of the free shares that have been issued. The 4,000 are the free shares that have been issued and so there is no need to make an adjustment.
Thanks
September 2, 2020 at 5:06 pm #583153Thank you Sir,
So for the 4000 is not required to multiply by the bonus fraction as it is issued on the same date as the bonus issue, and not been issue previously, did i interpret it correctly?
thank you so much
September 2, 2020 at 8:25 pm #583172You’re welcome. Yes, you’ve interpreted it correctly.
Thanks
September 3, 2020 at 7:01 am #583198thanks a lot sir.
September 6, 2020 at 10:51 am #583659You’re welcome!
- AuthorPosts
- You must be logged in to reply to this topic.