Purchase Solution

EPS calculation for 2 years, Issue of shares, Bonus Shares

Not what you're looking for?

Ask Custom Question

Question 2

The following is the Statement of Changes in Equity for the year ended 31 December 2009 and 31 December 2010.

Ordinary 10% Cumulative
Shares Preference Retained Share
of RM1 each Share earnings premium Total
$ $ $ $ $
1 January 2009 600,000 500,000 250,000 100,000 1,450,000
Issue of new shares 200,000 200,000 400,000
Profit for the year 150,000 150,000
Interim dividend
Preference share - - (37,500) - (37,500)
Ordinary share - - (60,000) - (60,000)
31 December 2009 800,000 500,000 302,500 300,000 1,902,500
1 January 2010 800,000 500,000 302,500 300,000 1,902,500
Bonus issue 100,000 - - - 100,000
Profit for the year - - 200,000 - 200,000
Interim dividend
Preference share - - (18,750) - (18,750)
Ordinary share - - (67,500) - (67,500)
31 December 2010 900,000 500,000 416,250 300,000 2,116,250

Additional information:
1. The company issued 200,000 ordinary shares at $2 on 1 October 2009.
2. The company declared a bonus issue of 100,000 ordinary shares on 1 December 2010.
3. Tax rate for 2009 and 2010 is 25%.

Required:
Calculate the basic earnings per share for the year 2009 and 2010.

Attachments
Purchase this Solution

Solution Summary

EPS calculation
furhter issue of shares
Bonus shares issue

Purchase this Solution


Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.