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

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

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.

#### Solution Summary

EPS calculation
furhter issue of shares
Bonus shares issue

\$2.19