EPS calculation

Because the bonus shares were issued subsequent to the issue at full value, just 3 months into the year, we can only treat those bonus shares as being attributable to 9 months' worth of new shares Your answer is clearly wrong because the 15,000,000 were in issue for the full year, not just for 3 months So .... After issuing the 4,000,000 at full market price and then immediately giving a one for three bonus issue, my figures for the year are as follows: 1.10.06 15,000,000 12/12 15,000,000 1. 1.07 4,000,000 9/12 3,000,000 1. 1.07 5,000,000 12/12 5,000,000 1. 1.07 1,333,333 9/12 1,000,000 Wanes 24,000,000 EPS $12,000,000 / 24,000,000 = $0.50 That bonus issue of 1 for 3 has to be applied separately to the 15,000,000 original shares and then to the 4 million shares that were in issue for just 9 months Where's the question from? It's a poser!

Thank you. I got it from practice book from 2015 to August 2016.

Thanks for that information It's a tricky question - rather more of a P2 type EPS problem than one from F7

hhmm sir.. I am not sure I follow your calculation.. 1.10.06 15,000,000 12/12 15,000,000 yes I get this calculation... the 15M shares in October. 1. 1.07 4,000,000 9/12 3,000,000 ok yes I get this calculation.. there is 9 months from 1st of jan to 31st sep.. so you have 9/12 * 4m shares = 3m shares 1. 1.07 5,000,000 12/12 5,000,000 ok yes, this is the bonus issue 1/3*15million= 5m 1. 1.07 1,333,333 9/12 1,000,000 what in the question tells us/hints to take 9/12th of 1M shares? where did you get the 1M shares from?

It's "1. 1.07 1,333,333 9/12 1,000,000" - 9 months of 1,333,333

sorry. not sure I follow sir. where did the 1,333,333 come from? where did the 1,000,000 come from. thanks where in the question can I see information that will give me those figures?

It's from here: 'an issue of 4 mil shares at full market price immediately followed by a 1 for 3 bonus issue' A 1 for 3 on 4 million is 1,333,333 and there are 9 months' worth of this bonus