Delta NV has share capital of Alm in shares of 0.25 each. At 31 May 20X9 shares

Question:

Delta NV has share capital of Alm in shares of €0.25 each. At 31 May 20X9 shares had a market value of €1.1 each. On 1 June 20X9 the company makes a rights issue of 1 share for every 4 held at €0.6 per share. Its profits were €500,000 in 20X9 and €,000 in 20X8. The year-end is 30 November.

Required:
Calculate
(a) The theoretical ex-rights price;
(b) The bonus issue factor;
(c) The basic earnings per share for 20X8;
(d) The basic earnings per share for 20X9.

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Financial Accounting and Reporting

ISBN: 978-0273744443

14th Edition

Authors: Barry Elliott, Jamie Elliott

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