Entity A has 200,000 ordinary shares outstanding on January 1, 20x1. Entity A offers rights issue to its existing shareholders that enable them to acquire 1 ordinary share at a subscription price of P120 for every 5 rights held. The rights are exercised on May 1, 20x1. The market price of one ordinary share immediately before exercise is P180. Entity A reported profit after tax of P2,700,000 in 20x1. What is the basic earnings per share in 20x1? * O 12.58 O 12.67 O 11.71 O 11.67

Entity A has 200,000 ordinary shares outstanding on January 1, 20x1. Entity A offers rights issue to its existing shareholders that enable them to acquire 1 ordinary share at a subscription price of P120 for every 5 rights held. The rights are exercised on May 1, 20x1. The market price of one ordinary share immediately before exercise is P180. Entity A reported profit after tax of P2,700,000 in 20x1. What is the basic earnings per share in 20x1? * O 12.58 O 12.67 O 11.71 O 11.67

Name: Entity A has 200,000 ordinary sharesoutstanding on January 1, 20x1. E
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Description: Entity A has 200,000 ordinary sharesoutstanding on January 1, 20x1. Entity Aoffers rights issue to its existingshareholders that enable them to acquire 1ordinary share at a subscription price ofP120 for every 5 rights held. The rights areexercised o

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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OFFON

Entity A has 200,000 ordinary shares
outstanding on January 1, 20x1. Entity A
offers rights issue to its existing
shareholders that enable them to acquire 1
ordinary share at a subscription price of
P120 for every 5 rights held. The rights are
exercised on May 1, 20x1. The market price
of one ordinary share immediately before
exercise is P180. Entity A reported profit
after tax of P2,700,000 in 20x1. What is the
basic earnings per share in 20x1? *
O 12.58
O 12.67
O 11.71
O 11.67

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