1 December 2019, B Plc had post-tax profits was $2,500,000 and had an issued share capital of $2,000,000 comprising 2,000,000 ordinary shares of 50p each and 1,000,000 $1 10% preference shares that are classified as equity. Assume that the post-tax profits for 2018 and 2019 were same at $ 2,500,000. The time-weighted number of shares was as follows: No. of Shares Shares (nominal value 50p) in issue at 01 January 2019 2,000,000 Shares issued for cash at market price on 30 September 2019 1,000,000 On 30 September 2019, B plc made a right issue of one share for every two shares (i.e one new share for every two shares held) at $3.25 per share. The following information is also given for B
At 31 December 2019, B Plc had post-tax profits was $2,500,000 and had an issued share capital of $2,000,000 comprising 2,000,000 ordinary shares of 50p each and 1,000,000 $1 10%
Earnings per share (EPS) is determined by dividing a company's profit by the number of common stock shares outstanding. The resulting value is used to calculate a company's profitability. It is typical for a corporation to announce earnings per share (EPS) that have been adjusted for unusual items and probable share dilution. Earnings per share is computed by dividing net income (also known as profits or earnings) by the number of available shares. A more precise computation modifies the numerator and denominator to account for shares created by options, convertible debt, or warrants. When the numerator of the equation is adjusted for continuous operations, it becomes more relevant.
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