C Limited is a stock broking firm in the business of buying and selling shares on the JSE (Johannesburg Securities Exchange) on behalf of its clients and on its own behalf. On 1 December 2015, C Limited bought, on its own account, 10 000 shares of D Limited when the market price was R40. The share price of D Limited rose drastically to R60 and on 31 March 2016, C Limited sold 5 000 of the D Limited shares.
Assuming that the year-end of C Limited is 31 March each year and that the corporate tax rate is 28% for 2016 and that only 70% of
What amount should be recorded as gain on fair value adjustment in the statement of profit or loss and other comprehensive income for the year ended 31 March 2016?
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- On August 19, 2004, Google completed its IPO of 18.5 million shares to the initial investors at $80 per share. The closing price of the stock that same day was $100.00. What was the dollar value of the underpricing associated with the Google IPO? (Round answer to 0 decimal places, e.g. 5,275.)arrow_forwardAll of the following occurred in 2019. A Plc has 3,500,000 shares in issue on 1st January. On 1st April, a further 300,000 shares were issued in the market. Later in the year, on 1st November, the company bought back 100,000 shares. On the 10th December, a 3 for 1 stock split came into effect. The net income for the year was €17,000,000 and the company paid €1,600,000 in preferred dividends. In the notes disclosures relating to granting of options and warrants: 1,050,000 Stock options, exercise price €30 900,000 Warrants, exercise paid €33 (the option and warrant exercise prices have been adjusted to reflect the stock split). Over the year, the company’s average share price was 40€. Calculate the basic and diluted EPS and show all your workings. If the company hadn’t issued stock options and warrants but had given equity upside through the preferred shares being convertible into 100,000 ordinary shares. What would the diluted EPS be now?arrow_forwardAnderson Steel Company began 2018 with 600,000 shares of common stock outstanding. On March 31, 2018,100,000 new shares were sold at a price of $45 per share. The market price has risen steadily since that time toa high of $50 per share at December 31. No other changes in shares occurred during 2018, and no securities areoutstanding that can become common stock. However, there are two agreements with officers of the company forfuture issuance of common stock. Both agreements relate to compensation arrangements reached in 2017. Thefirst agreement grants to the company president a right to 10,000 shares of stock each year the closing market priceis at least $48. The agreement begins in 2019 and expires in 2022. The second agreement grants to the controller aright to 15,000 shares of stock if she is still with the firm at the end of 2026. Net income for 2018 was $2,000,000.Required:Compute Anderson Steel Company’s basic and diluted EPS for the year ended December 31, 2018.arrow_forward
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