Calculation of Basic Earnings Per Share: Example No.2 Octagon Plc generated profit net of taxes of $2,500,000 for the twelve month period ending December 31, 2015. The firm owes ordinary dividends of $400,000 and cumulative preference dividends of $300,000 during the period. The company had 4,000,000 common shares outstanding at the beginning of the year. In addition, it sold 200,000 shares on June 1 2015 and 400,000 shares on September 1 2015. It also issued 500,000 shares on August 1 to the owners of a newly- acquired subsidiary. Finally, it bought back 60,000 shares on December 1, 2015. Required: a. Calculate the basic earnings per share for Octagon PLC.?

Calculation of Basic Earnings Per Share: Example No.2 Octagon Plc generated profit net of taxes of $2,500,000 for the twelve month period ending December 31, 2015. The firm owes ordinary dividends of $400,000 and cumulative preference dividends of $300,000 during the period. The company had 4,000,000 common shares outstanding at the beginning of the year. In addition, it sold 200,000 shares on June 1 2015 and 400,000 shares on September 1 2015. It also issued 500,000 shares on August 1 to the owners of a newly- acquired subsidiary. Finally, it bought back 60,000 shares on December 1, 2015. Required: a. Calculate the basic earnings per share for Octagon PLC.?

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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