Thank you sir , I think your prefer way doing is far far better and Simple but sir in the very example 1 how did we arrive at 6,250,000 at the date of 1.8.09? Svetlana had in issue 1.1.2009 , 5,000,000 $1 Equity shares. On 1 August , 2009 Svetlana made a 1 for 4 rights issue at an exercise price of $3. The mid market price immediately before the rights issue was $4. Earnings for the year available to equity shareholders was $3,000,000 and 2008 disclosed EPS was 54c.