The capital structures of two companies are as follows: Details as at 28 February 2014, the accounting date: Source of capital Hluli Limited Ndaba Limited ww w Long-term debt R767 500 at a coupon interest R400 000 at a coupon interest rate of 14% p.a. annum rate of 11% p.a. annum Preference shares issued 60 000 5% preference shares 38 000 5% preference shares of R 4.90 each of R 8 each Ordinary shares issued 42 000 shares 56 000 shares Q.1.1 Calculate the Earnings Per Share (EPS) for each company individually if Earnings Before Interest and Tax (EBIT) for the year ended 28 February 2014 were estimated as follows: Hluli Limited: R 625 050 Ndaba Limited: R 787 500 Note: Assume a tax rate of 28%
The capital structures of two companies are as follows: Details as at 28 February 2014, the accounting date: Source of capital Hluli Limited Ndaba Limited ww w Long-term debt R767 500 at a coupon interest R400 000 at a coupon interest rate of 14% p.a. annum rate of 11% p.a. annum Preference shares issued 60 000 5% preference shares 38 000 5% preference shares of R 4.90 each of R 8 each Ordinary shares issued 42 000 shares 56 000 shares Q.1.1 Calculate the Earnings Per Share (EPS) for each company individually if Earnings Before Interest and Tax (EBIT) for the year ended 28 February 2014 were estimated as follows: Hluli Limited: R 625 050 Ndaba Limited: R 787 500 Note: Assume a tax rate of 28%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The capital structures of two companies are as follows:
Details as at 28 February 2014, the accounting date:
Source of capital
Hluli Limited
Ndaba Limited
ww ww
Long-term debt
R767 500 at a coupon interest
R400 000 at a coupon interest
rate of 14% p.a. annum
rate of 11% p.a. annum
Preference shares issued
60 000 5% preference shares
38 000 5% preference shares
of R 4.90 each
of R 8 each
Ordinary shares issued
42 000 shares
56 000 shares
Q.1.1
Calculate the Earnings Per Share (EPS) for each company individually if Earnings
Before Interest and Tax (EBIT) for the year ended 28 February 2014 were estimated
as follows:
Hluli Limited:
R 625 050
Ndaba Limited:
R 787 500
Note: Assume a tax rate of 28%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7208fed-fc87-4789-b0e0-21bb851d2a75%2Fe44028eb-4675-49d8-bde8-36605aed582b%2Ffl2pmo_processed.png&w=3840&q=75)
Transcribed Image Text:The capital structures of two companies are as follows:
Details as at 28 February 2014, the accounting date:
Source of capital
Hluli Limited
Ndaba Limited
ww ww
Long-term debt
R767 500 at a coupon interest
R400 000 at a coupon interest
rate of 14% p.a. annum
rate of 11% p.a. annum
Preference shares issued
60 000 5% preference shares
38 000 5% preference shares
of R 4.90 each
of R 8 each
Ordinary shares issued
42 000 shares
56 000 shares
Q.1.1
Calculate the Earnings Per Share (EPS) for each company individually if Earnings
Before Interest and Tax (EBIT) for the year ended 28 February 2014 were estimated
as follows:
Hluli Limited:
R 625 050
Ndaba Limited:
R 787 500
Note: Assume a tax rate of 28%
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