Question 5
Marks plc has produced the following net profit figures:
2019 €1.1m
2020 €1.5m
On 1 January 2020 the number of shares outstanding was 500,000. During 2020 the
company announced a rights issue with the following details:
Rights: 3 new shares for each 5 outstanding (300,000 new shares in total)
Exercise price: €5.00
Date of rights issue: 1 May 2020
The market (fair value) of one share in Marks plc immediately prior to exercise was €11.
Required
Calculate EPS for 2019 and the 2020 figure as it would appear in the financial statements for
2019 and 2020
Ask the Tutor ACCA FR
ias 33
2y ago#1Hi,
I'm not here to just outright answer questions for you. You need to at least let me know what you do not understand.
Here we have an EPS question where you can use the class notes to help you answer it. Give it a go and see how you get on. I can then help if you get stuck or do not get it right, just let me know where you get stuck.
Look forward to hearing back from you.
Thanks
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