TIN CO

This topic has 5 replies, 4 voices, and was last updated 2 years ago by IAW3005.

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June 9, 2021 at 12:42 am #624046
abeera97777
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june 2018, F9, past question paper TIN COMPANY , sub question 2 ,Assuming equity finance is used, calculate the revised earnings per share after the business expansion.
How did we get the 3000000 million as Increased number of shares??
June 9, 2021 at 8:49 am #624104
John Moffat
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There are currently 2,500,000 shares in issue.

They have a 1 for 5 rights issue and therefore issue 500,000 new shares.

Therefore they end up with 2,500,000 + 500,000 = 3,000,000 shares.
June 9, 2021 at 5:24 pm #624203
abeera97777
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Alright, thank you.
June 9, 2021 at 5:30 pm #624207
John Moffat
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You are welcome 🙂
May 9, 2024 at 5:01 pm #705169
RINSHAPATHU
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Tin co, question no 5 calculation of gearing why add 2000 in debt & equity
May 10, 2024 at 7:31 am #705191
IAW3005
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Tin is potentially raising 2 million in either debt or equity
So you do the calculations as they were D/E and the new D/E one with 2m debt and again with equity
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