Part C (5 Marks) Kappa Ltd is finalising the calculation of its basic earnings per share. The entity has a profit before tax of $40,000,000 and a profit after tax of $28,000,000. It paid a dividend of $2000,000 to preference shareholders out of this profit. The preference shares are classified as equity. Kappa Ltd provides the following details: Kappa Ltd had a total of 10,000,000 ordinary shares on issue as at 1 July 2020 On 1st September 2020, Kappa Ltd issued a further fully paid shares on the basis of a one-for-four (1:4) bonus issue. The share price immediately prior to the bonus issue was $11.25. All shareholders took up the rights issue. The basic EPS for the year ending 30 June 2020 was 490 cents. Page 2 of 9 Required a) Calculate the theoretical ex-bonus price and adjustment factor. (1 mark) b) Compute the basic Earnings per Share (EPS) amount in cents for 30th June 2021. (3 marks) c) Compute the adjusted comparative EPS in cents for year ended 30th June 2020. (1 mark) Part C (5 Marks) Kappa Ltd is finalising the calculation of its basic earnings per share. The entity has a profit before tax of $40,000,000 and a profit after tax of $28,000,000. It paid a dividend of $2000,000 to preference shareholders out of this profit. The preference shares are classified as equity. Kappa Ltd provides the following details: Kappa Ltd had a total of 10,000,000 ordinary shares on issue as at 1 July 2020 On 1st September 2020, Kappa Ltd issued a further fully paid shares on the basis of a one-for-four (1:4) bonus issue. The share price immediately prior to the bonus issue was $11.25. All shareholders took up the rights issue. The basic EPS for the year ending 30 June 2020 was 490 cents. Page 2 of 9 Required a) Calculate the theoretical ex-bonus price and adjustment factor. (1 mark) b) Compute the basic Earnings per Share (EPS) amount in cents for 30th June 2021. (3 marks) c) Compute the adjusted comparative EPS in cents for year ended 30th June 2020. (1 mark)