Solve this problem please Delta NV has share capital of TZS 1,000,000 in shares of TZS 25 each. At 31 May 2019shares had a market value of TZS 110 each. On 1 June 2019 the company makes a rightsissue of 1 share for every 4 held at TZS 60 per share. Its profits were TZS 500,000 in2019 and TZS 440,000 in 2018. The year-end is 30 November.Required:Calculatea. the theoretical ex-rights priceb. the bonus issue factorc. the basic earnings per share for 2018d. the basic earnings per share for 2019.

The number of shares before the rights issue can be calculated by dividing the share capital by the…

Answered: Delta NV has share capital of TZS…

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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Delta NV has share capital of $l m in shares of $0.25 each. At 31 May 2019 shares had a market value of $1.1 each. On 1 June 2009 the company makes a rights issue of 1 share for every 4 held at $0.6 per share. Its profits were $500,000 in 2019 and $440,000 in 2018. The year-end is 30 November. Required: Calculate (a) the theoretical ex-rights price; (b) the bonus issue factor; (c) the basic earnings per share for 2018; (d) the basic earnings per share for 2019.
XYZ plc had an issued share capital of 1 million ordinary shares at 1 January 2020. The nominal value was 50p and the market value £2 per share. On 30 June 2020, the company offered a 1:2 rights issue (e.g., one new share for every two shares held) at a price of 100p per share. The post-tax earnings were £3m and £4m for 2019 and 2020, respectively. Required: a) Calculate the basic EPS for XYZ plc 31 December 2020, in accordance with best accounting practice. b) What is the bonus element for shareholders?
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On June 30, 2019, Haiti Company has 200,000 shares of P10 par ordinary share outstanding and the market price of the share is P12 per share. On the same date, the company declared a 1 for 2 share split. Immediately before the split, the total share premium was P900,000. What should be the balance in Haiti’s Share Premium account after the share split is effected?
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Prepare Iqra ltd's profit and loss account for the year ended 31st December 2020 in as much detail as possible.The profit and loss account should commence with the operating profit.
Alps Ltd has a net income after tax of $1 500 000 for the year ended 30 June 2019. At the beginningof the period, Alps Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 December 2018 AlpsLtd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March2019 Alps Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings. The last saleprice of an ordinary share before the bonus issue was $2.50. At the beginning of the current periodAlps Ltd also had 500 000, $1.00, 8% cumulative preference shares on issue. The dividends on thepreference shares are not treated as expenses in the statement of comprehensive income. The basicearnings 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. use different method to solve this thanks
Alps Ltd has a net income after tax of $1 500 000 for the year ended 30 June 2019. At the beginningof the period Alps Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 December 2018 AlpsLtd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March2019 Alps Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings. The last saleprice of an ordinary share before the bonus issue was $2.50. At the beginning of the current periodAlps Ltd also had 500 000, $1.00, 8% cumulative preference shares on issue. The dividends on thepreference shares are not treated as expenses in the statement of comprehensive income. The basicearnings 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. b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS. maximum 300 words
At January 1,2019, the Retained Earnings account has a balance of P 2,500,000. During the year, a 15% bonus issue was declared on its ordinary shares with a total par value of P 5,000,000 ( 50,000 shares outstanding). The fair value of each ordinary share on the date of declaration is P 120 and on the date of payment, P 125. Also, during the year, it was discovered that the depreciation expense charged for the year 2018 was P 300,000 instead of P 150,000 only. Corporate income tax is 30%. Treasury shares costing P 20,000 were also reacquired and it was noted that from the balance of Retained Earnings at the end of the year, the board of directors will appropriate 10% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000. What are the balance of the Retained Earnings-Appropriated and Unappropriated at December 31,2019?

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