Question 3. Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginning of the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018 Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made a one-for-five 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 Compaq Ltd also had 500 000, $1.00, 5% 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 2017 was $1.50 per share. Required: a) Calculate the basic EPS amount for 2018. b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.

Question 3. Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginning of the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018 Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made a one-for-five 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 Compaq Ltd also had 500 000, $1.00, 5% 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 2017 was $1.50 per share. Required: a) Calculate the basic EPS amount for 2018. b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

i cant find the answer on the site
In what format can you distribute T4, T4A, T5, or T4FHSA slips by email or electronic portal without obtaining consent? * 1 point > A) Always B) Only when requested by the recipient Only when the recipient is on extended leave D) Never
Can you explain what I might be missing throughly please? I have it correct but it claims that it's not complete. What am I missing?
answer ed is coming back incorrect please help
Answer the following questions by writing down the correct letter next to the relevant number:
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
please help with the question that is attached as a picture. thanks
Can you help me with posting this. 1st photo is question. 2nd photo is general journal
It says the answer I type in the boxes are wrong. What is the correct solution.
Can you send another picture or write it down cuz i dont understand
You guys provided me an expert answer? Cuz the table for the part 1 of the p missing as well on volum PR what do i enter? and the part 2 has a table but c utilized.
The 3rd question is a Journal entry if this information..I can’t attach a photo unfortunately the website won’t let me, but I’ve attempted my best and am unable to show it. Any help would be appreciated! Thanks!