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% 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 Plc as at 31 December 2019: Share option in existence 1,000,000 shares issuable in 2020 at $3.25 per share. An average market price per share of $4; 1. Convertible 8% preference shares of $1 each totaling $2,000,000 convertible at one ordinary share for every five convertible preference shares. 2. REQUIRED (a) Calculate the basic earnings per share (EPS) for 2018 and 2019.

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% 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 Plc as at 31 December 2019: Share option in existence 1,000,000 shares issuable in 2020 at $3.25 per share. An average market price per share of $4; 1. Convertible 8% preference shares of $1 each totaling $2,000,000 convertible at one ordinary share for every five convertible preference shares. 2. REQUIRED (a) Calculate the basic earnings per share (EPS) for 2018 and 2019.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

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% 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 Plc as at 31 December 2019:
Share option in existence 1,000,000 shares issuable in 2020 at $3.25 per share.
An average market price per share of $4%;
1.
Convertible 8% preference shares of $1 each totaling $2,000,000 convertible at
one ordinary share for every five convertible preference shares.
2.
REQUIRED
(a) Calculate the basic earnings per share (EPS) for 2018 and 2019.

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