The issued share capital of on January 1, 2015 was Ordinary Shares 50 cents each $6 million and 8% Preference Shares $2 million. The preference shares are non-redeemable The following share issue took place during the year to December 31, 2015: i. 31 March 2015 - a bonus issue of one (1) new share for every ten (10) shares held ii. 1 July 2015 a rights issue of one new share at $1.50 for every five (5) shares held. The market price of shares the day before the rights issue was $2.40 s after tax profit for 2015 was $5,000,000. Fumita Hardwood's basic earnings per share in the year to 31 December 2015 was correctly disclosed at 55 cents. Calculate for Hardwood, for the year to 31 December 2015: A. The basic EPS for 2015.

The issued share capital of on January 1, 2015 was Ordinary Shares 50 cents each $6 million and 8% Preference Shares $2 million. The preference shares are non-redeemable The following share issue took place during the year to December 31, 2015: i. 31 March 2015 - a bonus issue of one (1) new share for every ten (10) shares held ii. 1 July 2015 a rights issue of one new share at $1.50 for every five (5) shares held. The market price of shares the day before the rights issue was $2.40 s after tax profit for 2015 was $5,000,000. Fumita Hardwood's basic earnings per share in the year to 31 December 2015 was correctly disclosed at 55 cents. Calculate for Hardwood, for the year to 31 December 2015: A. The basic EPS for 2015.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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