Good morning Mike,
Hope you are doing fine. I have a question regarding Example one why do we multiply the fraction of 4/3.8 for the 5,000,000 and the 7 months. I mean for me the amount of 5,000,000 and the 7 months too but my confusion is regarding the 4/3.8 I don't understand the reason of this figure there. Thank you for the clarification.
Regards,
Miguel
Ask the Tutor ACCA FR
Earnings per share
Have you read "the rules"?
These rules (and the are only two of them) explain very clearly what to do when you have calculated the fraction - whether it be a bonus fraction or a rights fraction.
The rules are written in the notes - twice!
Follow them and you cannot go wrong!
Sign in to reply to this topic.