Question: Q2. On 1 July 2020 Farfalle plc had 5 million 1 ordinary shares in issue. On 1 September 2020, Farfelle made a bonus issue

Q2. On 1 July 2020 Farfalle plc had 5 million 1 ordinary shares in issue. On 1 September 2020, Farfelle made a bonus issue of 1 for 2. Its profit after tax for the year ended 30 June 2021 is 3.8m. An ordinary dividend of 1.8m was paid. (i) Calculate the earnings for year ended 30 June 2021 (1 mark) (ii) Calculate basic EPS for the year ended 30 June 2021 to the nearest pence (3 marks)

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