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Hi Mike. I’m having a little difficulty in example 3 chapter 21.
S had in issue 4,000,000 $1 equity shares throughout the year ended 31 Dec 2009, with an average mid-market price of $5. There were also 3,000,000 outstanding options, which had been granted to the directors, allowing them to exercise their option at $4 per share.
Earnings for the year ended 31 Dec 2009 available for equity were $2,800,000.
Calculate the basic and diluted EPS for S for the year ended 31 Dec 2009.I understood everything except for how did we get the 2,400,000 figure in the diluted working. Can you please guide me with this? I’ll be really thankful to you. =)
3 million @ $4 per option raises $12 million
If the company had wished to raise $12 million during the year, they could have issued 2,400,000 shares @ $5 each
Is that enough for you (This is all in the lecture and clearly written in the notes!)
Yes Mike Thnaks alot. This was my guess too =)
But Mike there are no lectures for chapters 20 21 and 22.I believe that there’s an earnings per share lecture on the P2 suite that would help
There simply was not enough time for me to record the full syllabus but I’ll be doing some more recording this next month.
Too late for you though – sorry
Okay Mike I’ll look for P2 lectures. But you guys are great! Simply great !! I really appreciate your whole team and all your efforts =)
But i’m sitting in the June session so i might be lucky to here your lectures before my exam.
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