Explain i. basic earnings per share. ii. fully diluted earnings per share. iii. potential ordinary shares. iv. limitation of EPS as a performance measure.

b) In connection with IAS 33 Earnings per Share: i. Explain the relationship between EPS and the price/earnings (P/E) ratio. ii. Why may the P/E ratio be considered important as a stock market indicator?

c) The profits after tax of Kofi Brokeman are as follows: GH year to 30 September 2020 50,000 year to 30 September 2021 52,800 On 1 October 2019, the company's issued share capital consisted of 150,000 ordinary shares. On 1 July 2021, the company made a 1 for 5 rights issue at 50Gp per share. This issue was fully subscribed. The market value of the company's shares just before the rights issue was 80Gp per share. Required: i. Calculate basic EPS for the year to 30 September 2021. ii. Calculate restated basic EPS for the year to 30 September 2020.