Calculate the basic EPS amount

Assignment Help Accounting Basics
Reference no: EM132684158

Question - Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginning of the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018 Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made a one-for-five bonus issue of ordinary shares out of retained earnings. The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Compaq Ltd also had 500 000, $1.00, 5% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2017 was $1.50 per share.

Required -

a) Calculate the basic EPS amount for 2018.

b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.

Reference no: EM132684158

Questions Cloud

Industry experts believe blockchain is technology : Industry experts believe blockchain is a technology that has the potential to affect the business of most IT professionals in the next five years.
What amount of cash payments were made for income taxes : Kinsey Corporation reported income taxes of $340,000,000 on its 2012 income statement. What amount of cash payments were made for income taxes
Modify pi simulation program to improve : Modify the Pi Simulation program to improve its appearance, behavior, and/or code in order to meet the quality objectives.
What should Taxpayer report : Taxpayer's unincorporated business sold machinery for $47,000 on November 22, 2020. What should Taxpayer report
Calculate the basic EPS amount : Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. Calculate the basic EPS amount for 2018
What amount of FICA taxes does Kyle owe for the year : Kyle earned $182,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year
How much the Gerrold must include in his gross income : Gerrold received $120,000 for damages to his professional reputation, How much the Gerrold must include in his gross income as a damage award
Determine the amount of Teresa Schafer Capital : Teresa Schafer, Drawing has a balance of $24,800. Determine the amount of Teresa Schafer, Capital at the end of the period
Prepare the adjusting entry : A physical inventory supplies count indicated $790 of inventory supplies currently on hand. Prepare the adjusting entry

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd