Question 2 (a) City Limited has an issued ordinary share capital of $1 million, divided into ordinary shares of 25 cents each, and 500,000 $1 preference shares carrying a dividend of 7% p.a. The following information is provided in respect of Year 1 and Year 0. Statement of profit or loss and other comprehensive income (extracts) Year 1 $ Year 0 $ Profit before taxation Less: Taxation Profit after taxation 900,000 700,000 (200,000) (165,000) Dividends: Ordinary shares 700,000 (150,000) (100,000) 535,000 Preference shares (35,000) (35,000) Net profits 515,000 400,000 Required: Calculate the basic earnings per share for the year ended 31 December Year 1 and Year 0. Question 2 (a) Adjust preference dividends to net profits: Year 1 Year 0 $000 $000 Profits after tax 700 535 Less: Preference dividends (35) (35) 665 500 Basic EPS: Net Profits Weighted average number of shares EPS (b) Year 1 Year 0 665 500 4,000 4,000 16.6 cents 12.5 cents
Question 2 (a) City Limited has an issued ordinary share capital of $1 million, divided into ordinary shares of 25 cents each, and 500,000 $1 preference shares carrying a dividend of 7% p.a. The following information is provided in respect of Year 1 and Year 0. Statement of profit or loss and other comprehensive income (extracts) Year 1 $ Year 0 $ Profit before taxation Less: Taxation Profit after taxation 900,000 700,000 (200,000) (165,000) Dividends: Ordinary shares 700,000 (150,000) (100,000) 535,000 Preference shares (35,000) (35,000) Net profits 515,000 400,000 Required: Calculate the basic earnings per share for the year ended 31 December Year 1 and Year 0. Question 2 (a) Adjust preference dividends to net profits: Year 1 Year 0 $000 $000 Profits after tax 700 535 Less: Preference dividends (35) (35) 665 500 Basic EPS: Net Profits Weighted average number of shares EPS (b) Year 1 Year 0 665 500 4,000 4,000 16.6 cents 12.5 cents
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How does it get the 4000 weight average number of share?
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education