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Sir,
Barwell had 10m ordinary shares in issue throughout the year ended 30 June 2003.On 1st July 2002 it had issued $2m of 6% convertible loan stock,each $5 of loan stock convertible into 4 ordinary shares on 1 July 2006 at the option of the holder.Bar well had profit after tax for the year ended 30 June 2003 of $1850000.It pays tax on profits at 30%.
What was diluted Eps???While calculating,conversion 2m*4/5??
How do we get that4/5???
At 1st January 2008 Artichoke had 5 million $1 equity shares in issue.On 1 June 2008 it made a 1 for 5 rights issue at a price of $1.5.The market price of the shares on the last day of quotation with rights was $1.8.
Total earnings for the year ended 31Dec 2008 was $7.6m.
What is Eps???
How do we get 5/12 and 7/12 in shares..Can you please tell me from which month to which month…
Waffle had share capital of $7.5 m in 50c equity shares at 1 October 2006.On 1 Jan 2007 it made an issue of 4m shares at full market price immediately followed by a 1 for 3 bonus issue.
The financial statements at 30 September 2007 showed profit for the year of $12m.
What is Eps??
How do we get 18000/3???
1 January to 31 May is 5 months
1 June to 31 December is 7 months
And that’s where we get 5/12 and 7/12 from
I disagree with the Waffle answer!
You ask “How do we get 18000/3???” I believe that the answer actually says 18/15 or even 15/3
i disagree because I interpret this question as meaning that not only do the existing 15,000 shares qualify for the 1 for 3 bonus issue but so too do the 4,000 shares issued at full price – “4m shares at full market price immediately followed by a 1 for 3 bonus issue.” clearly indicates that the bonus issue followed the issue at full price
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