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September 8, 2021 at 2:16 am
Thank you for your lectures,
In part c of example 1 you mentioned that for bonus issue the date is ignored and it is assumed that the bonus shares have always been in issue and accordingly we didn’t use weighted average approach for 125 shares, however in example 2 there is a bonus issue on 1st Dec of 2500 shares and as per the solution provided the bonus shares are weighted average for 4 months. Can you please clarify the approach to be followed with bonus shares?
Thanks in advance!
April 30, 2021 at 4:47 pm
There is a question on bonus fraction(i.e; example 2 as per the notes, can you please make a video on explaining that.
Thanks in advance.
November 10, 2020 at 9:48 am
would you pleas explain how you calculate 250M in the the last working no (D)
because when I calculated I got 253.6 = 254 M .
May 6, 2021 at 12:38 am
hello, pls did you figure this out? I also got 254M
September 17, 2021 at 9:25 am
I think because the price of share after 1 Feb X6 that we calculated were $1.38 per share, this is the price before of the period from 1 Feb X6 and to the end of the year we didn’t have any change in the number of shares so, the price after are the same, Fraction = 1 and 600m*(5/12) = 250m
May 11, 2019 at 5:13 pm
Can i trouble you with a question regarding example 1 d) at page 73 ?
You did not cover this in your audio lecture, but the text of page 133 implies that the extra shares are 63M.
I do not understand why we have to divide the 500m by 8
Thank you in advance for your consideration.
July 13, 2020 at 4:32 pm
1 for 5 offered at £1.25 when the market value is £1.40
So we are being offered 1share @ £1.25 = £1.25
For every 5 share which cost us £1.40 each = £7
So we now have 6 shares at a cost of £8.25 = 1.375
alawi sayed says
May 25, 2021 at 12:19 pm
Thanks for your nice lectures,
In part d since there are 500m shares for the price of $ 1.4 and since the right issue happened on 1st Feb 2006 31,so calculating the no of shares from 1-Jul 2005 until 31 Jan 2006 for Seven months ,why not just to multiply 500 X 7/12 = 292m shares since that was before the issue
and then we calculate the no of share after the right issue.
May 26, 2021 at 7:19 am
Because you need to apply the rights issue fraction to all periods prior to the rights issue
May 4, 2019 at 1:23 pm
My challenge is, if there is a full market price issue just before the bonus issue how do i treat that? I am failing to grasp it, if a qtn has a full market price followed by bonus issue.
July 16, 2020 at 10:04 am
I think we would get the number of shares after bonus issue as a denominator for CY EPS (i.e. # at the beginning of the year + # full price issue + # bonus issue).
BUT we should also restate PY EPS, by changing denominator (PY denominator + # bonus issue).
April 12, 2019 at 8:35 am
Under the example of the right issue, for next year do we take the number of equity shares 600 million ? (600*12/12 – assuming no any changes in the number)
July 16, 2020 at 9:53 am
Yes, if there would be no issue in year ending 30 June 20X7, then we would take 600 for calculation
January 22, 2019 at 8:26 am
can you explain example 1 part d. where in ri8 issue.u have done this 5*1.40 and 1*1.25=8.25. my question is from where you get 5 & 1? kindly plzzz explain this.and also after & before issue
July 16, 2020 at 9:56 am
It’s given in the question: there was an issue of 1 share (@1.25) for each 5 shares (@1.40 – market price). Which means that shareholder who has 5 shares @1.40 received an additional 1 share @1.25. Which means he has 6 shares for the total price of 8.25
November 30, 2018 at 8:43 am
When we calculated the rights issue, why dint we include the additional 50m on 1st aug or the bonus issue in nov?
December 31, 2018 at 2:35 pm
It is because each share issue is independent of the other, and so each part (a) to (d) is dealt with on an individual basis. It is important to understand how each issue of shares is dealt with individually before going on to anything more complex and a combination of the different scenarios.
May 25, 2021 at 3:18 pm
November 23, 2018 at 2:53 pm
Thanks for the video.i have a question . ,4000000 shares issued on 31.12.2001 of easch 25 cents.on 1.7.2002 the entity made a right issue 1 for 4 at 50 cents each.share price before the issue was $1,profit after tax 425000 and 320000 for the year ended 31.12.2002 and 31.12.2001 respevtively
calculate eps for 2002(including compartive) can you please explain me?
December 31, 2018 at 2:36 pm
I’m not here to answer a full question for you, sorry. If you explain where you are struggling specifically then am happy to help.
October 4, 2018 at 2:04 pm
I want to stud ACCA online what shall I do??
December 31, 2018 at 2:39 pm
If you’re only looking to start the ACCA qualification then you want to be starting with the earlier papers. I’d recommend that you start by visiting the ACCA website (www.accaglobal.com).
October 4, 2018 at 1:42 pm
There is no 31st June in the calendar 😉
November 24, 2018 at 8:20 am
It’s inflation adjusted
June 5, 2022 at 6:40 pm
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