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Hi,
I’m struggling to figure out how to calculate the EPS when there is a ordinary share issue, bonus share issue and rights share issue in the same financial year.
I can calculate them all separately but am unsure how to get a figure with them all together?
Please can you assist?
Hi,
If you identify a specific question to focus on then I can help you out with it.
Thanks
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Company A made the following shares transactions during the year.
On 31 June 19 2 millions ordinary shares were issued at market value $2
on Aug 19 a bonus issue was made of one for every 4 shares held
On 31 Sep 19 a rights issue was made by Sapphire at 1 for every 5 $1 shares held at a price of 50c. Market price prior was $1.
I can work out each separately however am unsure how to calculate a singular EPS combining all of above
Thanks
Hi,
Have you used the table format that we’ve used in the lectures? Try starting with that and it usually works. Have a go and let me know how you get on, I can’t just answer the question for you.
Also, you are unlikely to get a scenario as complicated as this in the FR exam.
Thanks
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