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ACCA Past Exam papers – March/June hybrid 2018 31a – part ii

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › ACCA Past Exam papers – March/June hybrid 2018 31a – part ii

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • Author
    Posts
  • March 3, 2019 at 1:04 am #507231
    britt89
    Member
    • Topics: 4
    • Replies: 1
    • ☆

    Hi,

    I am currently doing past exam papers on the ACCA website in preparation for the March exam sitting.

    I am struggling to understand the increase in PBIT to work out the revised EPS for the rights issue to raise Equity Finance.

    I have correctly worked out the TERP for part 31ai)

    Looking at the explanation for the answer, the workings say PBIT increases from 1597 to 1916, which then gives a revised profit after tax figure to work out the new EPS but no workings to back up where 1916 comes from.

    How do I work out the revised PBIT?

    Thanks

    March 3, 2019 at 9:27 am #507263
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    The first line of the question says that PBIT will increase by 20%.

    It is currently 1,597. If you add on 20% then it becomes 1,916.

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