Calculate the earnings per share of the company

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Is a company with an issued and paid up capital of 100,000 ordinary share of RM1 each and 20,000 10% debentures of RM1 each. The company manufactures electrical appliances.

During its accounting year ended on 31 December 2019, the company had operating expenses of RM50,000 and the gross profit was RM200,000. The company paid the 10% interest on debentures and declared an ordinary dividend of RM0.40 per share. Assuming the tax rate is 30%.

Question a) Calculate the earnings per share of the company.

Question b) In addition to the information, assuming also issued further 40,000 ordinary shares on 1 July 2019. Calculate the earnings per share of the company.

Reference no: EM132499295

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