How to determine the basic earnings per share for amd bhd

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Assumed independently that AMD Bhd is in dire need to provide immediate fresh capital for the group ongoing expansion project and offers renounceable rights issues on the basis of ONE (1) rights issue for five existing shares with an exercise price of RM8. AMD has 10,000,000 ordinary shares outstanding in 2018 and 2019. The offer was made on 1 July 2018 and expired on 30 June 2019. The fair value of AMD Bhd share on 29 June 2019 was RM10. Net income for the year ended 2018 and 2019 were RM8,000,000 and RM9,000,000 respectively.

Question 1: Determine the basic earnings per share for AMD Bhd for the year 2018 and 2019.

Reference no: EM132569151

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