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A had an issued share cap on 1 may’14 of $63M 25c equity shares.On 15 aug it made 1:3 bonus issue and on 1 oct 1:10 right issue @ 36c. MMP on 1/10 was 52c & tax rate 25%.
profit after tax $70M.
what is EPS on 30 apr’15?My ans:
Bonus fraction = 4/3
Right fraction = 52/501may to 15aug = $63M/25c; X 3.5/12 X 4/3 X 52/50 = 25.48M
15aug to 1oct = (63M + 63M/3; 84M) X 1.5/12 X 52/50 = 10.92M
1oct to 30apr = (84M + 84M/7) X 7/12 = 56M=> Wanes = 25.48 + 10.92 + 56 = 92.4M
=> EPS = 70M/92.4M = 0.76c.However, the answer with the question says 18.94c.
I didn’t quite understanding the working provided.
Can you please explain?well I just realized it after re-reading the question. But thanks anyways, I learned a good lesson before exam to be careful on such error:)
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