EPS

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
November 21, 2017 at 2:06 pm #417147
iyamu
Participant
- Topics: 286
- Replies: 171
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.
November 21, 2017 at 2:52 pm #417169
MikeLittle
Keymaster
- Topics: 27
- Replies: 23368
If we start with 5,000,000 and we have a 1 for 4 rights issue, how many shares are involved in the rights issue?
5,000,000 / 4 * 1 = 1,250,000
But we already had 5,000,000 in issue so, with this additional 1,250,000 we now have 6,250,000
OK?
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘EPS’ is closed to new replies.