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chapter 19 example 6

This topic has 3 replies, 2 voices, and was last updated 12 years ago by MikeLittle.

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November 24, 2012 at 8:41 am #55689
sj626
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- Topics: 5
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Dear tutor,
I don’t understand one sentence about the last note “in December 2009,there was a further issue at full market price”.would you tell me what’s the meaning about it.
November 24, 2012 at 10:51 am #108555
MikeLittle
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No problem. It means that in December 2009 the company made a further issue of shares ( to the public) at a cost to the public of the full ( pre-issue ) market price of the existing shares
Better?
November 24, 2012 at 2:04 pm #108556
sj626
Member
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OK, But well,what’s the function of this sentence/ what does it play in here?
November 24, 2012 at 4:19 pm #108558
MikeLittle
Keymaster
- Topics: 27
- Replies: 23327
It means that the number of shares in issue increases with effect from the date of issue but there is no fraction to apply in the fraction column. Thus, the weighted average number of shares in issue will increase and that affects the earnings per share calculation
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