Calculate the basic eps amount for given year

Reference no: EM132720442

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: EM132720442

Questions Cloud

Accountability and ethics in emergency management : Determine two standardized actions and ethical practices that emergency management practitioners might implement in order to further professionalize the field.

What is the interest rate : A spreadsheet to solve the following problem. At EOY 0 $1000 is borrowed. Payments of $85 are made at EOY 1 through EOY 15. (No payment is made at EOY 0.)

About sexual harassment in the workplace : What do you know about sexual harassment in the workplace?

Create code that allows society to maintain : While laws create a code that allows society to maintain its structure and rights protect against inequality,

Calculate the basic eps amount for given year : 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.

Implement the water sustainability plan : Act as the Council members and provide important leadership considerations for the mayor in preparing to implement the water sustainability plan.

What is the monthly margin of safety in dollars : If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and (2) the margin.

Describe the sources of the conflict : Illustrating workplace experience in which conflict arose. Describe the sources of the conflict.

Civil Service Reform Act : Explain what civil service in the United States looked like before 1978. Explain what civil service looks like since the Civil Service Reform Act of 1978.

User Account

All Pages