Solution-Compute the diluted eps for the current year

Compute the diluted eps for the current year

Assignment Help Financial Accounting

Reference no: EM132948725

Question - Given below is the extract of statement of profit or loss of Ayer Bhd, a listed company.

Profit form the year ended 30 June x5

Profit before taxation

RM700,000

Taxation - 30%

(RM200,000)

RM500,000

Dividends paid

Ordinary Shares

RM100,000

Preference Shares

35,000

a. The following information is also provided:

b. Issued share capital on 1 July x4 comprises 2 million ordinary shares and RM500,000 7% preference shares.

c. On 1 July x4, RM500,000 10% convertible debentures (convertible into 200 ordinary shares per RM100 debenture) were outstanding.

d. Changes in capital structure during the year ended 30 June x5 are as follows:

a. On 1 October x4, a rights issue of ordinary shares on a one-for-four basis at RM0.80 (market price before the issue was RM1) was made.

b. The basic EPS for the year ended 30 June x4 was RM0.18.

e. Tax rate is 30%.

Required -

a. Compute the company's basic EPS for the current year and comparative figure for the previous year.

b. Compute the diluted EPS for the current year.

Reference no: EM132948725

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Compute the diluted eps for the current year

Reference no: EM132948725

Reference no: EM132948725

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