On 1 January 2016, Brightwell plc had 100 million issued ordinary shares of $1 par value....

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On 1 January 2016, Brightwell plc had 100 million issued ordinary shares of $1 par value. There were $20M 10% cumulative preference shares in issue at the same date. There had been no change in issued share capital during the year ended 31 December 2015. Brightwell plc had profit after tax of $25M for the year ended 31 December 2016. No preference dividend has been declared in respect of the period. The following additional ordinary shares were issued during the year ended 31 December 2016: 1. On 1 February, Brightwell announced a one for two rights issue at $2 per share. The exercise date was 1 March, and the market price immediately before the exercise date was $3. 2. 3. 4. On 1 April, Brightwell made a one for four bonus issue. On 1 August, Brightwell issued 10 million ordinary shares for cash at full market price of $3.20. On the 1 November, Brightwell purchased 4 million of its own shares for cash of $3.30 per share. The following issues also relate to the ordinary shares of Brightwell plc: On 1 March 2016, share options were issued to ten executives in Brightwell. Each executive had the option to purchase 2 million ordinary shares for an exercise price of $2.70 per share. The average market price of the ordinary shares during 2016 was $3.10. The exercise rights for each executive are dependent on completing three years of service with Brightwell plc up to 31 March 2019. On 1 January 2010, Brightwell issued $10M 4% convertible bonds. These bonds are convertible into ordinary shares in 2018 at the rate of 40 shares per $100 of convertible bonds. Brightwell plc pays corporation tax at 25%, and reported a basic EPS of 20 cents per share for the year ended 31 December 2015. REQUIRED Calculate the earnings per share and diluted earnings per share figures of Brightwell plc for the years ended 31 December 2016 and 2015. On 1 January 2016, Brightwell plc had 100 million issued ordinary shares of $1 par value. There were $20M 10% cumulative preference shares in issue at the same date. There had been no change in issued share capital during the year ended 31 December 2015. Brightwell plc had profit after tax of $25M for the year ended 31 December 2016. No preference dividend has been declared in respect of the period. The following additional ordinary shares were issued during the year ended 31 December 2016: 1. On 1 February, Brightwell announced a one for two rights issue at $2 per share. The exercise date was 1 March, and the market price immediately before the exercise date was $3. 2. 3. 4. On 1 April, Brightwell made a one for four bonus issue. On 1 August, Brightwell issued 10 million ordinary shares for cash at full market price of $3.20. On the 1 November, Brightwell purchased 4 million of its own shares for cash of $3.30 per share. The following issues also relate to the ordinary shares of Brightwell plc: On 1 March 2016, share options were issued to ten executives in Brightwell. Each executive had the option to purchase 2 million ordinary shares for an exercise price of $2.70 per share. The average market price of the ordinary shares during 2016 was $3.10. The exercise rights for each executive are dependent on completing three years of service with Brightwell plc up to 31 March 2019. On 1 January 2010, Brightwell issued $10M 4% convertible bonds. These bonds are convertible into ordinary shares in 2018 at the rate of 40 shares per $100 of convertible bonds. Brightwell plc pays corporation tax at 25%, and reported a basic EPS of 20 cents per share for the year ended 31 December 2015. REQUIRED Calculate the earnings per share and diluted earnings per share figures of Brightwell plc for the years ended 31 December 2016 and 2015.