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Q.Waffle had 15 Million Shares at 1 Oct 2006. On 1 Jan 2007 He Made An issue of 4 Million Shares at Market Value Full immediately followed by 1/3 Bonus Issue . Financial statements on 30 Sept 2007 showed profit of 12 million.
What is EPS?
The Answer was 50c which was found without using Bonus fraction in solution I don’t understand why bonus fraction not used In calculating Weighted Average SharesWhose question is this? I really hope that it’s not mine!
From what I can see, the answer HAS used the bonus fraction, but has failed to add in the bonus shares.
I have:
15 x 3/12 x 4/3 and
19 x 9/12 x 4/3That gives 5 million and 19 million when multiplied through but appears to ignore the 6,333,333 bonus shares
???
It was in bpp kit( June 2015) and they didn’t use bonus fraction , I think the rules of standard must have changed for December attempt I suppose , I had same calculation as yours but didnt get answer
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