1. Business
  2. Accounting
  3. 30 septemberx2 5 stamfo rd bhd has in issue 10...

Question: 30 septemberx2 5 stamfo rd bhd has in issue 10...

Question details

30 Septemberx,2 5. Stamfo rd Bhd has in issue 10 million fully paid ordinary shares, 4 million ordinary shares which are 50% paid and RM5 million fully paid 75% convertible cumulative preference shares. Preference shares are converible into ordinary shares at a rate of 5:4, meaning five preference shares become four ordinary shares. On 1 January x7, the company issued employee share options of 1 millon shares. The exercise price was RM3 per share. On 1 April x8, the unpaid capital on the 4 million shares was called up and was fully paid. On 1 July x8, half of the preference shares were converted into ordinary hares.
Profit after tax for x7 was RM2 million and for x8 it w as RM2.2 2 million Average price of one ordinary share was RM5 in x7 and RM7 50 Tax rate is 25%. in x8 Required: Compute the companys basic and diluted EPS 31 December x7 and x8. for the years ended
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution