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sir plz tell me how calculate notional extra shares under the most possible dilution in which revised calculation of revise calculation of shares
Which dilution option, if exercised, will give rise to the greatest number of extra shares?
Then that’s the one that we use in our calculations.
OK?
A company had 8.28 million shares in issue at the start of the year and
made no new issue of shares during the year ended 31 December
20X4, but on that date it had in issue $2,300,000 convertible loan stock
20X620X9.
The loan stock carries an effective rate of 10%. Assume an
income tax rate of 30%.The earnings for the year were $2,208,000.
This loan stock will be convertible into ordinary $1 shares as follows.
20X6 90 $1 shares for $100 nominal value loan stock
20X7 85 $1 shares for $100 nominal value loan stock
20X8 80 $1 shares for $100 nominal value loan stock
20X9 75 $1 shares for $100 nominal value loan stock
Calculate the fully DEPS for the year ended 31 December 20X4.in this question how calculate notional shares
Which of those 4 options results in the greatest number of new equity shares being issued?
Answer that for me first
sir this option is giving gratest equity shares
20X6 90 $1 shares for $100 nominal value loan stock
You asked “in this question how calculate notional shares”
You’ve just done it!
thanks sir .bt i want to ask one thing more that if i study kaplan further f7 notes and lectures need to prepare or not .further how prepare 40 marks mcq,s fully.
If it were my choice, I’d stick with opentuition free course notes and lectures and use the Kaplan text to look up any part where you feel you need a really deep detailed knowledge (there aren’t many of those areas!)
As for preparation for the 40 marks mcqs, practice, practice and practice some more. And then do some more practicing. And DON’T mark your guesses in the question book. That way you can do the same questions over and over again
If it were my choice, I’d stick with opentuition free course notes and lectures and use the Kaplan text to look up any part where you feel you need a really deep detailed knowledge (there aren’t many of those areas!)
As for preparation for the 40 marks mcqs, practice, practice and practice some more. And then do some more practicing. And DON’T mark your guesses in the question book. That way you can do the same questions over and over again
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