Question 1Part AThe following summarised information is available in relation to "ABC', a publicly listed company inAustralia:Statement of comprehensive income extracts for years ended 30th June:20212020Continuing Discontinued Continuing DiscontinuedS'000S'000S'000S'000Profit after tax from:Existing operation4,000(1500)50001200Newly acquiredoperations*1000nilAcquired on the I November 2020On 1" July 2019 ABC Ltd had:$24 million of $2 ordinary shares in issue.$10 million 8% convertible debentures in 2024; the terms of conversion are 100 equity shares in exchange foreach $200 debenture.On I April 2021 the directors of ABC were granted options to buy 4 million shares in the company for $2.00cach. The average market price of ABC's shares for the year ending 30th June 2021 was $5.00 each.Assume an income tax rate of 30% for year 2019, 2020 and 2021.Required:Calculate the diluted carnings per share (EPS) on the continuing operations of ABC for the year ended 30 June2021 and the comparatives for 2020.

Diluted earnings per share are the earnings per share which a company has earned per share if the…

Answered: Calculate the diluted carnings per…

Calculate the diluted carnings per share (EPS) on the continuing operations of ABC for the year ended 30 June 2021 and the comparatives for 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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