Gemilang Bhd has share capital of RM1 million in shares of 25 sen each. At 31 May 2022 shares had a market value of RM1.10 each. On 1 June 2022, the company makes a right issue of 1 shares for every 4 held at RM0.60 per share. Its profit were RM500,000 in 2022 and RM440,000 in 2021. The year-end is 30 November. Calculate (a) the theoretical ex-rights price; (b) the bonus issue element; (c) the basic earnings per share for 2021; and (d) the basic earnings per share for 2022

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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please answer all parts within 30 minutes.. make sure all 4 subparts are solved else i will surely downvote the solution.

Gemilang Bhd has share capital of RM1 million in shares of 25 sen each. At 31 May 2022 shares had
a market value of RM1.10 each. On 1 June 2022, the company makes a right issue of 1 shares for
every 4 held at RM0.60 per share. Its profit were RM500,000 in 2022 and RM440,000 in 2021. The
year-end is 30 November.
Calculate (a) the theoretical ex-rights price; (b) the bonus issue element; (c) the basic earnings per
share for 2021; and (d) the basic earnings per share for 2022.
Transcribed Image Text:Gemilang Bhd has share capital of RM1 million in shares of 25 sen each. At 31 May 2022 shares had a market value of RM1.10 each. On 1 June 2022, the company makes a right issue of 1 shares for every 4 held at RM0.60 per share. Its profit were RM500,000 in 2022 and RM440,000 in 2021. The year-end is 30 November. Calculate (a) the theoretical ex-rights price; (b) the bonus issue element; (c) the basic earnings per share for 2021; and (d) the basic earnings per share for 2022.
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