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diluted earning per share

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › diluted earning per share

  • This topic has 8 replies, 2 voices, and was last updated 10 years ago by AvatarMikeLittle.
Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
    Posts
  • October 13, 2015 at 8:49 am #276151
    Avataraamir
    Member

    sir plz tell me how calculate notional extra shares under the most possible dilution in which revised calculation of revise calculation of shares

    October 13, 2015 at 8:52 am #276152
    AvatarMikeLittle
    Keymaster

    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?

    October 13, 2015 at 9:07 am #276154
    Avataraamir
    Member

    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

    October 13, 2015 at 12:03 pm #276165
    AvatarMikeLittle
    Keymaster

    Which of those 4 options results in the greatest number of new equity shares being issued?

    Answer that for me first

    October 15, 2015 at 6:35 am #276363
    Avataraamir
    Member

    sir this option is giving gratest equity shares

    20X6 90 $1 shares for $100 nominal value loan stock

    October 15, 2015 at 7:54 am #276378
    AvatarMikeLittle
    Keymaster

    You asked “in this question how calculate notional shares”

    You’ve just done it!

    October 17, 2015 at 6:05 am #276751
    Avataraamir
    Member

    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.

    October 17, 2015 at 7:38 am #276757
    AvatarMikeLittle
    Keymaster

    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

    October 17, 2015 at 7:39 am #276758
    AvatarMikeLittle
    Keymaster

    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

  • Author
    Posts
Viewing 9 posts - 1 through 9 (of 9 total)
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