Alpha plc had an issued share capital of 2,000,000 ordinary shares at 1 January 2021. The nominal

Question:

Alpha plc had an issued share capital of 2,000,000 ordinary shares at 1 January 2021. The nominal value was 25p and the market value £1 per share. On 30 September 2021 the company made a rights issue of 1 for 4 at a price of 80p per share. The post-tax earnings were £4.5m and £5m for 2020 and 2021 respectively.

Required:

(a) Calculate the basic earnings per share.

(b) Restate the basic earnings per share for 2020.

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