Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginning of the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018 Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made a one-for-five bonus issue of ordinary shares out of retained earnings.The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Compaq Ltd also had 500 000, $1.00, 5% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2017 was $1.50 per share. Required: a) Calculate the basic EPS amount for 2018.  b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.

Alps Ltd has a net income after tax of $1 500 000 for the year ended 30 June 2019. At the beginning of the period Alps Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 December 2018 Alps Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2019 Alps Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings. The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Alps Ltd also had 500 000, $1.00, 8% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2018 was $1.50 per share. Required: a) Calculate the basic EPS amount for 2019 and provide the adjusted comparative EPS for 2018.

Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial balance was extracted from the books of the company on 31 March 2020, afterthe preparation of the tra ding асcount: Dr Kshs Kshs 200.000 Ordinary share capital, fully paid Land and buildings at cost Sundry debtors Fumiture and fittings at cost General expenses Sundry Creditors Stock at 31 March 2020 Bank Trading account: gross profit Office salaries and expenses Accumulated provision for depreciation on fumiture and fittings Share premium account Advertising and selling expenses Bad debts Provision for doubtful debts Profit andloss account Directors' fees 170.000 38.300 80.000 3.800 25.000 42.000 12.000 98.050 25.000 32.000 20.000 5.000 250 600 12.000 11.300 387,650 387,650 The following information is given: The provision for doubtful debtors is to be adjusted to Kshs 700. i. i. Depreciation is to be provided in respect of fumiture and fittings at 10% per annum on cost.…

On January 1, 2022, Shamrock SA issued 10-year, €1,870,000 face value, 6% bonds, at par. Each €1,000 bond is convertible into 15 ordinary shares of Shamrock. Shamrock's net income in 2023 was €462,800, and its tax rate was 40%. Interest expense on the liability component in 2023 was €130,900. The company had 104,000 ordinary shares outstanding throughout 2022. None of the bonds were converted in 2022. (a) Compute diluted earnings per share for 2022. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share € (b) Compute diluted earnings per share for 2022, assuming the same facts as above, except that €1,040,000 of 6% convertible preference shares were issued instead of the bonds. Each €100 preference share is convertible into 5 ordinary shares of Shamrock. (Round answer to 2 decimal places, eg. 2.55.) Diluted earnings per share €

Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginningof the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On1 March 2018 Compaq Ltd made a one-for-five bonus issue of ordinary shares out of retained earnings.The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of thecurrent period Compaq Ltd also had 500 000, $1.00, 5% cumulative preference shares on issue. Thedividends on the preference shares are not treated as expenses in the statement of comprehensiveincome. The basic earnings per share for the period ended 30 June 2017 was $1.50 per share.Required:a) Calculate the basic EPS amount for 2018.

The following information relates to Rose plc for the year ended 31 December 2019:   £,000 Turnover Operating costs Trading profit Net interest payable   Exceptional charges   Tax expenses Profit after tax 700  476 224      2 222    77 145    66    79 Rose plc had 100,000 ordinary shares of £1 each in issue throughout the year. Rose plc has in issue warrants entitling the holders to subscribe for a total of 50,000 shares in the company. The warrants may be exercised after 31 December 2025 at a price of £1.10 per share. The average fair value of shares was £1.28. The company had paid an ordinary dividend of £15,000 and a preference dividend of £9,000 on preference shares classified as equity.   Required: Calculate the basic EPS for Rose plc for the year ended 31 December 2019, in accordance with best accounting practice. Calculate the diluted EPS figure, to be disclosed in the statutory accounts of Rose plc in respect of the year ended 31 December 2019. Briefly…