Homework SourseCan anyone answer this question this may help me to score in
Can anyone answer this question, this may help me to score in exam. Thank you. related financial accounting and reporting
or los of yer Blhd s of Ayer Bhd, a listed 2. Given below is am extract of statement of proft company Profit for the year ended 30 June xs RM 700,000 (200,000) 500,000 Profit before taxation Taxation-30% Dividends paid - ordinary shares 100,000 preference shares 35,000 The following information is also provided: a. Issued share capital on 1 July x4 comprises 2 million ordinary shares and RM500,O00 7% preference shares. On 1 July x4, RM 500,000 10% convertible debentures (convertible into 200 ordinary shares per RM100 debenture) were outstanding. Changes in capital structure during the year ended 30 June x5 are as follows b. c. i. On 1 October x4, a rights issue of ordinary shares on a one-for- four basis at 80 sen (market price before the issue was RM1) was made ii. The basic EPS for the year ended 30 June x4 was 18 sen. Tax rate is 30%. Required: a. Compute the company\'s basic EPS for the current year and comparative figure for the previous year. Compute the diluted EPS for the current year. b. 3. Given below is the income summary for Travel Bhd for the years ended 31 December x6 and x5: X5Solution
Answer:
BEPS for:
Current year: 18.6 Sen
Previous Year: 18 Sen (Given)
Diluted BEPS: 19.6 Sen
Working
Current Year BEPS:
Profit After Tax: RM 500,000
Less: pref Div RM 35,000
Profit attributable to equity share holders: 465,000
No. of outstanding shares 2,500,000 (2,000,000 + 500,000 (2,000,000/4))
Basic EPS = Sen 18.6 (465,000/2,500,000*100)
Computation of diluted EPS
Dilutable equity= 10% debentures to 200 Equity
Total Outstanding equity shares : 2,500,200 (2,500,000+ 200)
New calculated profit
Earlier profit before tax: 7,000,000
+ interest 50,000
New PBT 750,000
Tax (30% of 750,000) 225,000
PAT 525,000
Pref Dividend: 35000
Profit attributable to shareholders: 490,000
Diluted EPS : Sen 19.6 (490,000/2,500,200*100)
