Eight plc earnings per share practice test question

Dear Tutor,

This is the question:

Eight plc had an issued share capital at 1 April, 2014 of $ 42 million 50 cent equity shares.
On 15 August, 2014 Eight plc made a 2 for 5 bonus issue followed on 1 November by an
issue at full market price of 20 million shares at 75 cents each.

This was followed on 1 January, 2015 by a 1 for 4 rights issue at 60 cents per share exercise
price. Mid-market price at the start of 2015 was 80 cents.
What is the weighted average number of shares in issue for Eight plc in the year to 31
March, 2015?

This is the answer:

Incorrect
rights fraction is:
4@ 80 3.20
1@ 60 = 0.60
3.80/5 76 (ok)
rights fraction is 80/76(ok), bonus fraction is 7/5 (not ok)
84 x 7/5 = 117.6
1 April -1 November 7/12,1 November 1 January 2/12, 1 January-31 March = 3/12
117,600,000 x 7/12x 80/76 =72,210,526
137,600,000 x 2/12 x 80/76= 24,140,351
172,000,000 x 3/12 = 43,000,000
wanes 139,350,877

I calculated the shares for each date range and then arriving at the rights issue i did what you did in the lecture.

please explain to me this part:

137,600,000 x 2/12 x 80/76= 24,140,351
172,000,000 x 3/12 = 43,000,000
wanes 139,350,877

1.How did we calculate 137.600.000,00 ?

my calculation 42m million x 0.50 = 21.000.000.00

2.When we calculate the bonus fraction column don’t we have to multiply the shares with the months and multiply that with the new prices and then the bonus ?

my calculation

137,600,000 x 2/12 x 80/76 x 7/5= 33.796.49

Why do we multiply only by the price ? I thought we include the bonus 7/5 in the whole year .

3. Also when an exercise tells us that shares where issued in the middle of the month eg. 15th of August do we have to calculate the whole month or just the half?

Thank you