Earnings Per Share – Example 2

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July 16, 2021 at 2:33 pm #627944
Aayush98
Member
- Topics: 17
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Hi,

I noted in the answer for Example 2 that all figures have been multiplied by a bonus fraction of 3/2, why is this the case?

If so, should we use this as a fixed template and always use a fraction?

Please confirm.

Thank you.

Aayush Shah
July 17, 2021 at 8:41 pm #628100
P2-D2
Keymaster
- Topics: 4
- Replies: 7235
Hi,

Yes, whenever there is a bonus issue we need to adjust the share in issue prior to this date by the bonus fraction.

Thanks
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