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Hi,
In chapter 21 Earnings per share there is quite a lot to remember and understand. I wander how much time I should spend on it. Earnings per share will be in the multiple choice questions, correct? This topic seems to be quite complex with all diluted EPS calculations.
Thank you!
Hi Edite
You are correct – in a way
Surely ALL topics are difficult the first time you look at them and, if they’re not difficult for you, then you can guarantee that they will be difficult for others!
It’s like all mini-topics – the more you do, the easier they become
Those dilutions are really very simple exercises and the calculation and application of the fractions when working out WANES is also straight forward when you try them two or three times (if necessary, two or three times each day!)
If you anything at all of a logical brain, you can actually see what the dilution exercises are trying to achieve … and if you believe that you have not a shred of logic, then you can simply remember the routine steps – there aren’t that many of them
Personally I found eps and deferred tax the two most satisfying sub-topics where there are loads of easy marks and where I could pick up time on my time allocation
How much time to spend on them? There could be 4 (but probably only 2) marks for eps (There could well be 4 and possibly 5) for deferred tax!
But that’s a potential 9 marks for the aggregation of those two topics and that, as you well know, is almost 20% of the marks requirement to pass this paper!
I believe that time spent getting on top of those two topics is time well spent
Does that answer you?
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