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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Pluto Company began operations on January 1, 2019 with an authorized capital of 500,000 preference shares of P5 par value of which 30% of which was issued for P7 and 950,000 ordinary shares of P10 par value of which half were issued on January 1, 2019 at P15 per share. During the year, the company had a net income of P1,250,000 and declared dividends of P250,000. The following were the transactions in 2020: a. Issued 100,000 ordinary shares for P17 b. Issued 150,000 preference shares for P8 per share. c. Authorized the purchase of a custom made machine to be delivered in January 2021. Pluto Company appropriated P300,000 of accumulated profits for the purchase of the machine. d. Issued additional 50,000 preference shares for P9 per share, e. Net income for the year, P1,200,000. Dividends of P600,000 were declared for 2020 to shareholders of record on January 15, 2021 to be paid on March 15, 2021 per share. What is the total contributed capital as of December 31, 20207
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: Calculate the basic EPS amount for 2019 and provide the adjusted comparative EPS for 2018. 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. Calculation of the basic EPS amount for 2019 and provide the adjusted comparative EPS for 2018. Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.
ABC SAOG has in issue 2,000,000 ordinary shares of OMR 0.500 fully paid. On 31st Dec 2018 management board has decided to pay a dividend of 100 baisa on each ordinary share which was readily approved by the shareholders. The date of payment was 10th March 2019. During the year the company earned a profit after tax of OMR 200,000. The company paid the amount of dividends for the ordinary shareholders for the year 2019. What will be the Net Retained earnings after the payment of dividend to shareholders assuming that the company had opening Retained earnings on 1st January 2018 of OMR 800,000? a. OMR 1,000,000 b. OMR 600,000 c. OMR 800,000 d. OMR 300,000 The amount of ordinary dividend to be distributed to the shareholder is a. OMR 200,000 b. OMR 1,000,000 c. OMR 700,000 d. OMR 400,000
accenture company had made a net profit attributable to ordinary shareholders of 2,000,000 for the year ended December 31,2019.there are 100,000 ordinary shares outstanding during the entire year.since January 2019 there had been 800,000 of 5% convertible loan in issue. the terms of conversion for every 10,000 nominal amount are:June 30 2019 120 ordinary sharesJune 30, 2020 150, ordinary sharesJune 30,2021 140 ordinary sharesNo conversion has taken place during the current year. the interest on the convertible loan is allowable for a tax relief of 30%.REQUIRED:1. basic earnings per share 2. diluted earnings per share
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 3,500,000. 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 170,000 only. Corporate income tax is 32%. 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 20% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000. What is the balance of the Retained Earnings- Appropriated at December 31,2019? *
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?
On January 1, Cee Company's ordinary share capital amounted to P1,000,000, with P10 par value. On April 1, 2019, the entity issued P5,000,000, 10% bonds with a face value of P1,000. The bonds were converted on October 1, 2019 and 20 ordinary shares were issued in exchange for each bond. Net income was P10,000,000. The income tax rate is 30%. Requirement: 1. What is the amount of basic earnings per share? 2. What is is the amount of diluted earnings per share?
Marcus Company has reported a total financial liability of P15,000,000 in its accounting records as of December 31, 2019 which include the following: A P3,000,000 face value perpetual bond that pays 5% interest each year A P2,000,000 redeemable preference share that will be redeemed by Marcus at a future date. A P1,500,000 redeemable preference shares redeemable at the option of the holder A P75,000 written call option that allows the holder to purchase a fixed number of ordinary shares of Marcus Company for a fixed amount. What is the correct amount of financial liability that should be reported by Marcus Company in its December 31, 2019 statement of financial position?
On 1st January 2019, Brown Plc., had in issue, 800,000 ordinary shares with a par value of sh. 10 each. On 31st October 2019 the company issued 100,000 ordinary shares at full market price at sh 20 each. On 31st December 2020, the directors decided to declare a bonus issue of 1 for 4. On 31st December 2021, the directors declared a rights issue of 1 for 5 at a price of sh. 20. On the day immediately before the rights issue took effect, the shares of this company were trading at sh. 25 each. Brown Plc. does not have any preference shares in issue.The post-tax earnings for the years 2019, 2020 and 2021 were £350,000 and £520,000 and £ 430,000 respectively. Required a. Compute the basic earnings per share for the years 2019, 2020 and 2021 b. From 'a' above, comment on the financial performance of this company, in each year.

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