A company that makes up its accounts to 31 December each year had 4 million ordinary...

 

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A company that makes up its accounts to 31 December each year had 4 million ordinary shares. On 1 April x7, it made a rights issue of one-for-four at a price of RM2 each. The market value of these shares at 31 March x7 was RM4 each. The company's profits for x7 and for x6 were RM500,000 and RM400,000, respectively. Required: a. Calculate EPS for x6. b. Calculate EPS for x7. c. How will EPS for x6 be adjusted? A company that makes up its accounts to 31 December each year had 4 million ordinary shares. On 1 April x7, it made a rights issue of one-for-four at a price of RM2 each. The market value of these shares at 31 March x7 was RM4 each. The company's profits for x7 and for x6 were RM500,000 and RM400,000, respectively. Required: a. Calculate EPS for x6. b. Calculate EPS for x7. c. How will EPS for x6 be adjusted?

Answer rating: 100% (QA)

To calculate the EPS Earnings Per Share for x6 and x7 we need to consider the number of shares and t... View the full answer