Earnings per share, Cost Accounting

Assignment Help:

Daisy Ltd has a net profit after tax of $3 400 000 for the year ending 30 June 2012.  For the entire financial year Daisy Ltd had two million $1.00 cumulative preference shares on issue which provide dividends at a rate of 10% per year.  The preference share dividends were not treated as part of interest expense.

At 1 July 2011 Daisy Ltd had 1 800 000 fully paid up shares on issue.  On 1 October 2011 a further 200 000 fully paid ordinary shares were issued at an issue price of $5 per share.  On 1 May 2012 Daisy Ltd made a 1 for 4 bonus issue of ordinary shares.  The last sale price of an ordinary share before the bonus issue was $5.50.  The basic earnings per share for the year ending 30 June 2011 was $2 per share.

Required

(i) Calculate the earnings per share for the year ending 30 June 2012.  Round number of shares to the nearest whole number and show all calculations.

(ii) What is the comparative earnings per share for the previous year to be reported in the 2012 financial reports?  Show workings.

(iii)  Explain briefly how your answer to this question would differ had there been a rights issue as opposed to a bonus issue of shares.


Related Discussions:- Earnings per share

Methods of cost estimation, Methods of Cost Estimation We will conside...

Methods of Cost Estimation We will consider given cost estimation methods commonly employed, namely as: a. High Low Activity method b. Engineering Analysis c. Account

Calculate remuneration of employee of an organisation, Calculate Remunerati...

Calculate Remuneration of Employee of an Organisation Based on the data underneath that you are necessary to calculate the remuneration of all employee like determined with ea

Explain the principles of kaizen costing, SD manufactures and sells a small...

SD manufactures and sells a small range of timber based  products. The main differences b/w the products are their size and the type of timber they used. SD prepares annual budgets

Market-based transfer price optimal, Under what conditions is a market-base...

Under what conditions is a market-based transfer price optimal?

Accounting, Ask What is the major value of the weighted cost of capital cal...

Ask What is the major value of the weighted cost of capital calculation for the firm? question #Minimum 100 words accepted#

Inventory systems, Find a journal article online about just-in-time invento...

Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi

Sales budget, Sales Budget It provides volume of sales and sales mix o...

Sales Budget It provides volume of sales and sales mix of the recent operations. The sales forecast is initially prepared and upon completion the sales budget is finalized. Th

Objective type question, 1. The bank added another company's deposit to our...

1. The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n). a) addition to the balance per books. b) subtraction from the

Compute the irr, Matheson Electronics' Canadian Branch will help introduce ...

Matheson Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many m

Write Your Message!

Captcha
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!

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