QUESTION 1 Given below is an extract of statement of profit or loss of Ayer Bhd., a listed company. Profit for the year ended 30 June x5 RM Profit before taxation 700,000 -200,000 500,000 100,000 Taxation Dividend paid- ordinary shares - preference shares 35,000 The following information is also provided: Issued share capital on 1 July x4 comprises 2 million ordinary shares and RM500,000 7% preference shares. а. On 1 July x4, RM500,000 10% convertible debentures (convertible into 200 ordinary shares per RM100 debenture) were outstanding. b. C. Changes in capital structure during the year ended 30 June x5 are as follows: On 1 October x4, a rights issue of ordinary shares on a one-for-four basis at 80 sen (market price before the issue was RM1) was made. i. ii. The basic EPS for the year ended 30 June x4 was 18 sen. d. Tax rate is 30%. Required: а. Compute the company's basic EPS for the current year and comparative figure for the previous year. b. Compute the diluted EPS for the current year.
QUESTION 1 Given below is an extract of statement of profit or loss of Ayer Bhd., a listed company. Profit for the year ended 30 June x5 RM Profit before taxation 700,000 -200,000 500,000 100,000 Taxation Dividend paid- ordinary shares - preference shares 35,000 The following information is also provided: Issued share capital on 1 July x4 comprises 2 million ordinary shares and RM500,000 7% preference shares. а. On 1 July x4, RM500,000 10% convertible debentures (convertible into 200 ordinary shares per RM100 debenture) were outstanding. b. C. Changes in capital structure during the year ended 30 June x5 are as follows: On 1 October x4, a rights issue of ordinary shares on a one-for-four basis at 80 sen (market price before the issue was RM1) was made. i. ii. The basic EPS for the year ended 30 June x4 was 18 sen. d. Tax rate is 30%. Required: а. Compute the company's basic EPS for the current year and comparative figure for the previous year. b. Compute the diluted EPS for the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TUTORIAL 6
QUESTION 1
Given below is an extract of statement of profit or loss of Ayer Bhd., a listed company.
Profit for the year ended 30 June x5
RM
Profit before taxation
700,000
-200,000
500,000
100,000
35,000
Taxation
Dividend paid- ordinary shares
- preference shares
The following information is also provided:
Issued share capital on 1 July x4 comprises 2 million ordinary shares and RM500,000 7%
preference shares.
а.
On 1 July x4, RM500,000 10% convertible debentures (convertible into 200 ordinary shares per
RM100 debenture) were outstanding.
b.
С.
Changes in capital structure during the year ended 30 June x5 are as follows:
On 1 October x4, a rights issue of ordinary shares on a one-for-four basis at 80 sen
(market price before the issue was RM1) was made.
i.
ii.
The basic EPS for the year ended 30 June x4 was 18 sen.
d.
Tax rate is 30%.
Required:
а.
Compute the company's basic EPS for the current year and comparative figure for the previous
year.
b.
Compute the diluted EPS for the current year.
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