Calculate the earnings per share for both 2017 and 2018

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Question

Kwela limited had 700000 shares in issue at 1 June 2017. In March 2018 Kwela announced a one for four rights issue at an exercise price of R4 per share. The market Value of Kwela's Shares immediately before the exercise on 31 March 2018 was R7.

The net profit for the year ended 31 May 2017 was R2000000 and for 31 May 2018 was R2500000.

Required:

Calculate the earnings per share (EPS) for both 2017 and 2018 for Kwela Limited as reported in their 2018 Annual Financial Statements. The company's year end is 31 May. Answers must comply with the requirements of IFRS.

Reference no: EM132382140

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