[sk7520626]

@lovelysuvam said:
Yes,please send me your email address.I ll pass it.

Hi can you email me as well? Thank you very much
sk7520626@yahoo.com.sg

[sk7520626]

Right Issues = 8000 000 x 1/4 = 2000 000 units
2000 000 x $1.2 = $ 2,400,000
Total Shares (after right issues) = 8000 000 + 2000 000 = 10,000,000 units

New Shareholders’ Equity = $9,000,000 + $2,400,000 = $11,400,000

10% (ROSF) = Profit after Tax , PAT/ Shareholders’ Equity ) X100%

10 % = (PAT / Shareholders’ Equity) X 100 %
10 % = (PAT / $ 9,000,000) X100 %
PAT = $ 900,000 (Before right issues)

After right issues, ROSF = (PAT / Shareholders’ Equity) x 100%
(remain same) 10 % = (PAT/$ 11,400,000) x 100%
PAT = $ 1,140,000

EPS = Profit / Number of Share
= $1,140,000/ 10,000,000 units
= $0.114 or 11.4 cents

Can you understand my explaination?

[Author]

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