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Hello,
1. Please how was the EPS restated for the previous year, in Example 2 in the Free Lecture notes for Larissa. I understand the calculation and how the EPS for year was got for 16c.
I am just trying to place how it was restated to 12.4c.
Kindly explain2. Also, for example 3, i understand the basics of Diluted EPS but can you explain how the $2,400,000 was derived in solution .
Thanks
Last year was disclosed as 16 cents per share
When we multiply last year’s disclosure by the reciprocal of this year’s fraction(s), we arrive at 12.4 cents per share
If we issue 3 million shares at a price of $4 each, that would raise $12 million
If we had wanted to raise $12 million during the year, we could have issue ??? shares at average mid-market price of $5 each
So ??? = how many shares?
OK?
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