Question $1$

Required:

Compute Renn$-$Dever's earnings per share as it would have appeared in income statements for the

years ended December $31,2019,2020,$ and $2021.$

Question $2$

On December $31,2020,$ Dow Steel Corporation had $600,000$ shares of common stock and $300,000$

shares of $8\%,$ noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a $4\%$

common stock dividend on May $31$ and paid cash dividends of $$400,000$ and $$75,000$ to common and

preferred shareholders, respectively, on December $15,2021.$

On February $28,2021,$ Dow sold $60,000$ common shares. In keeping with its long$-$term share

repurchase plan, $2,000$ shares were retired on July $1.$ Dow's net income after tax for the year ended

December $31,2021,$ was $$2,100,000.$ The income tax rate is $25\%.$

Required:

Compute Dow's earnings per share for the year ended December $31,2021.$

Question $3$

Brachly, a publicly quoted company, has $750,000$ ordinary shares of $$4$ each in issue throughout its

financial year ended $31$ March $2014.$ The following are the other particulars:

$1$ July $2014$: New issue of $250,000$ ordinary shares at full market price;

$30$ September $2014$: Rights issue made of $1$ for $4.$ Exercise price $$6$ and the market price

before rights issue $$6\mathrm{.}50.$

$1$ November $2014$: Bonus issue made of $2$ for $5$

$1$ December $2014$: $3$:$2$ stock split

Options granted in $2013$ to the company's senior management giving them the right to

subscribe for $600,000$ ordinary shares at a cost of $$6\mathrm{.}5$ each.

The statement of comprehensive income of Brachly for the year ended $31$ March $2015$ reports a net

profit after tax of $$928,500.$ Tax on profits is $30\%.$ The average market price of Brachly's ordinary shares

was $$8$ for the year ended $31$ March $2015.$

Required:

$($a$)$ Calculate Brachly's basic earnings per share figures for the year ended $31$ March $2015.$

$($b$)$ if the weighted average number of shares for the year ended $31$ March $2014$ was $750,000,$ how will

it be adjusted to calculate the restated EPS for disclosure purpose for the year ended $31$ March

$2015$