Q2. The following information was extracted from the Statement of Financial Position of Carman Berhad as at 31 December 2018. 7% cumulative preference shares 2,000,000 issued and outstanding of RM100 each ordinary shares 22,000,000 issued of RM1 each treasury shares 2,000,000 5% convertible bond are RM10,000,000 worth of bond convertible into 2,000,000 ordinary shares stock options 1,000,000, each to purchase one ordinary share at RM25 per share warrants 2,000,000, each to purchase one ordinary share at RM15 per share Average market share price RM20 Average warrant price RM10 Net profit RM36,000,000 Tax rate is 24% Required: (a) Compute the basic earnings per share. (b) Taking into account dilutive effects above, compute the diluted earnings per share.

Q2. The following information was extracted from the Statement of Financial Position of Carman Berhad as at 31 December 2018. 7% cumulative preference shares 2,000,000 issued and outstanding of RM100 each ordinary shares 22,000,000 issued of RM1 each treasury shares 2,000,000 5% convertible bond are RM10,000,000 worth of bond convertible into 2,000,000 ordinary shares stock options 1,000,000, each to purchase one ordinary share at RM25 per share warrants 2,000,000, each to purchase one ordinary share at RM15 per share Average market share price RM20 Average warrant price RM10 Net profit RM36,000,000 Tax rate is 24% Required: (a) Compute the basic earnings per share. (b) Taking into account dilutive effects above, compute the diluted earnings per share.

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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