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Hi,
Could you please explain how to work EPS as following :
At 31 Mar 2013 issued shares capital of £25M, made up of equity share of 50 cents each.
1 Jul 2012 recorded fully subscribed rights issue 1 of 4 at $1.20 each. Immediately before this issue, the MV $2 each. Profit year ended 31.03.16 was $39M.
What is the basis EPS for the year ended 31.03.2013?Thank you
Point #1 – sort out the dates please
I assume that the 31 March, 2013 is correct and also that 1 July, 2012 is correcty
But where does the profit for the year ended 31 March 2016 fit in??
Again, I assume that you mean 31 March, 2013 so I’ll work on that basis
Set up the table D N P F W as normal
We know that the number of shares in issue as at the end of the year was 50 million shares ($25 million worth of 50 cent shares) …
… and we know also that there was a 1 for 4 rights issue during the year ended 31 March, 2013
Therefore, the number of shares in issue BEFORE the rights issue must have been 40 million (because a 1 for 4 issue would mean a further 10 million issued and we know that we are to finish with 50 million)
So, start the year at 1 April, 2012 with 40 million
On 1 July now we have 50 million
Can you take it from there?
Hi.
Thank you for your reply.
I have worked
D N N T F W
1.4.12 B/F 40M 3/12 2/1.84 10870
1.7.12 1:4 10M
50M 9/12 37500
W: 48370EPS=$39000M/$48370Mx100=80.6 Cents
Is this correct answer please? Thank you
That looks ok to me – although I don’t know why you have two “N”s and a “T”
What’s the matter with D N P F (F) W?
But, so long as you know what you are doing, that’s fine
OK?
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