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Eps R

The document outlines a series of questions related to the calculation of basic and diluted earnings per share (EPS) for an entity with various share issuances and profit figures. It includes specific scenarios involving bonus share issues, market value shares, and the impact of convertible securities on EPS. The final questions require calculations based on provided financial data and share structures.

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9 views18 pages

Eps R

The document outlines a series of questions related to the calculation of basic and diluted earnings per share (EPS) for an entity with various share issuances and profit figures. It includes specific scenarios involving bonus share issues, market value shares, and the impact of convertible securities on EPS. The final questions require calculations based on provided financial data and share structures.

Uploaded by

bsaf2247195
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Question 1

Question 2
Bonus Share Issue
Question 3
Question 4
Question 5
Question 6

An entity had 1 million shares in issue on 1 January 20X1. They issued 400,000 shares at market value

on 1 Mar 20X1, followed by a 1 for 5 bonus issue on 1 May 20X1, with a further 600,000 issued at

market value on 1 Jul 20X1

If profit for the year ending 31 December 20X1 is $440,000, what is the basic earnings per share?
Question 7

Calculate Basic and diluted EPS


Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 13

Net profit attributable to ordinary share holders Rs. 25,000


Ordinary shares outstanding Rs. 2,000
Avg. fair value of one ordinary share during the year Rs. 120

Options
150 shares with an exercise price of Rs. 60 each
Convertible preference shares
1,800 shares entitled to cumulative dividend of Rs. 15 per share. Each preference share is
convertible In two ordinary shares.
3% Convertible debentures‘
Nominal total value Rs. 100,000. Each debenture is convertible into 10 ordinary shares.
Tax rate is 30%
Requirement
1. Increase in earnings attributable to ordinary shareholders on conversion of potential ordinary
shares
2. Diluted Earnings per share
Question 14
Question 15

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