User Account

All Pages

Explain to a holder of ordinary shares in jkl the usefulness

Assignment Help Financial Accounting
Reference no: EM132961917

JKL is a listed entity preparing financial statements to 31 August. At 1 September 2018, JKL had 6,000,000 50cents shares in issue. On 1 February 2019, the entity made a rights issue of 1 for 4 at 125cents per share; the issue was successful and all rights were taken up. The market price of one share immediately prior to the issue was 145cents per share. Earnings after tax for the year ended 31 August 2019 were shs. 2,763,000.

Several years ago, JKL issued a convertible loan of shs. 2,000,000. The loan carries an interest rate of 7% and its terms of conversion (which are at the option of the stockholder) are as follows:

For each shs. 100 of loan inventory:
Conversion at 31 August 2023 105 shares
Conversion at 31 August 2024 103 shares
JKL is subject to an income tax rate of 35%.

Required:

Problem (a) Using basic earnings per share and diluted earnings per share for the year ended 31 August 2019, advise the investors on the financial performance of the company

Problem (b) The IASC Framework for the preparation and presentation of financial statements states that the objective of financial statements is to provide information that is "useful to a wide range of users in making economic decisions".
Explain to a holder of ordinary shares in JKL both the usefulness and limitations of the diluted earnings per share figure.

Reference no: EM132961917

Questions Cloud

How do solve the annual sales revenue for qaz limited : Calculate the annual sales revenue for Qaz Limited. Qaz Limited has total assets of $400,000 and shareholders' equity of $240,000. An analyst's report.
Explain the concept of randomized controlled trials : A. Please explain the concept of randomized controlled trials.
What is the yield to maturity on this? bond : Consider a? five-year, default-free bond with annual coupons of 6% and a face value of $1,000. What is the yield to maturity on this? bond
The case-canadian snow vehicles : Canadian Snow Vehicles is a manufacturer of snowmobiles. During the past four years, profits have dropped 43 percent. This decline is attributed to rising produ
Explain to a holder of ordinary shares in jkl the usefulness : Explain to a holder of ordinary shares in JKL the usefulness. JKL is a listed entity preparing financial statements to 31 August. At 1 September 2018.
What is the stock value : The dividend is expected to grow at a constant rate of 8 percent per year. What is the stock's value if investors require a 15 percent rate of return
What relevance do unions have today : What relevance do unions have today? In order to stay relevant into the future, what recommendations would you make to leaders of the labour movement?
Explain physical and chemical properties in chemistry : What are the differences between physical and chemical properties in chemistry?
Determine what rate of return must be earned : Determine what rate of return must be earned on the net proceeds to the corporation so there will not be a dilution in earnings per share

Reviews

Write a Review

Financial Accounting Questions & Answers

  Carol elects to take the additional first year depreciation

In January of 2015, Carol Brady is trying to decide if she should purchase a new vehicle for her business, We Are Brady, Inc. Carol has asked you to calculate the amount of depreciation that she will be able to deduct for each of the following vehicl..

  Calculate the maximum value of cell

What is a formula that uses the MAX function to calculate the maximum value of cell c20 of the monday through friday worksheet group.

  Find variable overhead efficiency variance for the month

What was the variable overhead spending variance for the month and what was the variable overhead efficiency variance for the month?

  Explain the process for evaluating two competing projects

Explain the process for evaluating two competing projects/alternatives/etc. that have unequal lives when using Equivalent Annual Cost/Benefit (EAC or EAB)

  Why or why not the emh does not provide adequate explanation

Why or why not the EMH does not provide an adequate explanation of asset pricing with respect to a firms debt and equity. Provide the suitable example.

  Evaluate what is estimate of the stocks current price

Determine What is estimate of the stocks current price? Do not round intermediate calculations. Round your answer to the nearest cent.

  Recognize over the term of the annuity

Anne purchased an annuity from an insurance company that promised to pay her $24,000 per year for the next ten years. Anne paid $176,400 for the annuity, and in exchange she will receive $240,000 over the term of the annuity. How much of the first $2..

  What the plants will be reported as assets at

What the plants will be reported as assets at? The Pharoah Company has five plants nationwide that cost $370 million. The current fair value of the plants

  Should mmcc proceed with this new project

Should MMCC proceed with this new project? Variable cost per unit is $60 and total fixed costs are $25,000 per year. Initial cost of equipment is $800,000.

  Prepare an audit approach for detecting fraud

Analyze ethical theories to evaluate a decision-making process to determine compliance with professional codes of ethics. create a risk assessment

  Problem regarding the operations costing

Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the mo..

  Report for the chief accountant of the australian securities

Report for the Chief Accountant of the Australian Securities and Investments Commission how the respective components of the remuneration could be expected to align the interests of the managers

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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