Calculate basic and restate and diluted earnings per share

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Reference no: EM132927782

On 1 June 2017 , Ohoy Berhad had 10 million ordinary shares in issue. No new shares were issued during the year , but on that date there were 2 million outstanding share options at RM3 per share . The market value is RM3.50 per share . Profit before tax for the year ended 2018 is RM3,500,000 . Tax is 25 % .

Ohoy Berhad's accounting year end is 31 May every year . Ohoy Berhad received a new project and decided to issue 2 million ordinary shares which amounted RM2,000,000 and 3 million ( RM1 each ) 7 % convertible preference shares at a discount for RM2,500,000 on 1 August 2018. The discount on the issue is amortised over 3 years . The dividends are payable from year 2022 only . The market dividend yield on preference shares is 7 % per annum and market value of ordinary shares RM3.50 One 7 % convertible preference shares can be converted into two ordinary shares . The profit after tax for the year ended 2019 is 30 % higher than 2018.

On 1 September 2019 , the company make an offer of one - for - five bonus issue share for their shareholders This is an appreciation to all the shareholders for their trust on the company . The market value of ordinary shares is RM3.70 and profit after tax is RM4 600 000 for the year ended 2020.

The company made a right issue of one new ordinary share at a price of RM2.50 each for every six ordinary shares held on 1 December 2020. The market price of ordinary shares is RM3.50 each . The profit after tax for the year is RM4,700,000 .

Problem 1: Calculate basic , restate and diluted earnings per share for 2018 , 2019 , 2020 and 2021

Reference no: EM132927782

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