Briefly outline the significance of the EPS as a measure of financial performance   Outline TWO (2) disclosure and presentation requirements of IAS33    The firm had 10 million common stocks in issue for the year ending December 31 2022. On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00 of debentures can be converted into four common shares on the 1 of January at the option of the holder of the debenture. The firm had profit after tax for the year ended December 31, 2022, of $1 850 000. The firm pays tax at 30% for the year ended. Required: Calculate the Basic and diluted EPS for the year 2022   Outline the need to disclose a diluted EPS figure and on the relevance of this to the sharehol

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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  1. Briefly outline the significance of the EPS as a measure of financial performance

 

  1. Outline TWO (2) disclosure and presentation requirements of IAS33 
  2.  

The firm had 10 million common stocks in issue for the year ending December 31 2022.

On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00

of debentures can be converted into four common shares on the 1 of January at the option

of the holder of the debenture.

The firm had profit after tax for the year ended December 31, 2022, of $1 850 000. The

firm pays tax at 30% for the year ended.

Required:

  1. Calculate the Basic and diluted EPS for the year 2022

 

  1. Outline the need to disclose a diluted EPS figure and on the relevance of this to the

sharehol

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