Relenta Company reported an after-tax net profit of Rs. 3,17,000 for 2022. On April 1, 2021...

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Relenta Company reported an after-tax net profit of Rs. 3,17,000 for 2022. On April 1, 2021 the company had 96000 equity shares of Rs.10 par value and 1000 of 12%, Rs.100 convertible cumulative preference shares. Information about transactions that affected the share capital are as follows: 1. On July 1, 2021, Company declared bonus of 1 share for every 4 shares held. 2. Issued 60,000 shares at a premium of Rs.25 on October 1, 2021 On March 31, 2022, company declared preference dividends of Rs.12000. Required: 1. Analyze the basic Earning per share (EPS) for 2022. 2. Compute the diluted earning per share (EPS) assuming each preference share will be converted into 10 equity shares. 3. Comment upon the difference between the two. Relenta Company reported an after-tax net profit of Rs. 3,17,000 for 2022. On April 1, 2021 the company had 96000 equity shares of Rs.10 par value and 1000 of 12%, Rs.100 convertible cumulative preference shares. Information about transactions that affected the share capital are as follows: 1. On July 1, 2021, Company declared bonus of 1 share for every 4 shares held. 2. Issued 60,000 shares at a premium of Rs.25 on October 1, 2021 On March 31, 2022, company declared preference dividends of Rs.12000. Required: 1. Analyze the basic Earning per share (EPS) for 2022. 2. Compute the diluted earning per share (EPS) assuming each preference share will be converted into 10 equity shares. 3. Comment upon the difference between the two.

Answer rating: 100% (QA)

To calculate the basic and diluted earnings per share EPS for Relenta Company for the year 2022 we need to follow these steps Calculate the weighted a... View the full answer