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Hello, guys I really need your help.
larissa had earnings of $600 000 for the year ended 28 feb 2009 and 2,000,000 $1 equity share capital at 1 march 2008. on 31 august, larissa issued 3,000,000 new shares at fill market price, and on 1 november 2008, larissa made a bonus issues of 2 for every 7 held last yr’s eps was disclosed as 16c.
have worked out and understand that before bonus issue we had 2,357,142 shares.from 1st nov when the BI was made…I really dnt knw.have tried but keep getting a different solution frm the answers.help me understandLet me guess: first calculate the WANES outstanding during the year. Divide attrib earnings by WANES. Restate prio year eps by the bonus adj factor of 9/7. Thus: Wanes = 2m* 6/12*9/7 held for six moths + bal b/f +full mkt issue for 2 months 5m*2/12*9/7 + shares held for 4 months 5m *9/7 *4/12 = 4500000 shares. Eps for FY2009 = 600k/4.5m = 13c. Adjusted Eps for FY2008 = 16* 9/7 = 21c. There are a total of 9 shares after an capitalisation issue of 2 for 7. Cornfirm Mr Tutor.
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