Hi Sir, Hope you are well The question is from BPP revision kit. This is related to EPS , I wanted to understand why did they multiplied 50m *20 , I mean the new shares is issues for every 4-1 share so technically : 250m shares – original and 62.5m shares – right issues should have been issues which should have been added.
However as per answer it is deducted , can you please help me understand why is that the case?
You might need to be careful here as I think the 250m shares could be the number in issue after the rights issue has taken place. If so to find the number in issue before this then you would need to deduct the number of shares issued as part of the rights issue.