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

Goal congruence - behavioural aspects of standards, Goal Congruence - Behav...

Goal Congruence - Behavioural Aspects of Standards A perfect variance analysis and standard costing system must enhance goal congruence between as: i. The goal of individua

Business, Purchase of office supplies.

Purchase of office supplies.

Ow much overhead will be assigned to each sailboat produced?, ShipShape Com...

ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two different departments, design

EXPECTED CASH COLLECTIONS, WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PAT...

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Standard costing, Standard Costing A standard cost is a predetermined ...

Standard Costing A standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions. It is not an average of pa

What is the gain or loss on the sale, a machine is purchased on july 1 2009...

a machine is purchased on july 1 2009 for $181,500. It has an expected useful life of 11 years and no salvage value. After five years, the machine is sold for $98,000 cash. What is

introduction of internal rate of return , Introduction of Internal Rate of...

Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

Actual operating cost method, On May 9th, David paid $34,500 (including sal...

On May 9th, David paid $34,500 (including sales tax) to purchase a used Audi A8 that he uses 90% of the time for business. No trade-in was involved. David uses the actual operating

How much will alan save or lose, Hale Company makes sets of wrenches. They ...

Hale Company makes sets of wrenches. They are trying to decide whether to continue to make the case the wrenches are sold in, or to outsource it to another company. The direct mate

Classification, what is the classification of cost & how it is done?

what is the classification of cost & how it is done?

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