B4 a publicly quoted company has 750000 ordinary shares of


Problem

B4 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: New issue of 250,000 ordinary shares at full market price;

- 30 September: Rights issue made of 1 for 4. Exercise price $6 and the market price before rights issue $6.50.

- 1 November: Bonus issue made of 2 for 5

- 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 $6.5 each.

The statement of comprehensive income of B4 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 B4 ordinary shares was $8 for the year ended 31 March 2015.

Required:

Calculate B4s basic and diluted earnings per share figures for the year ended 31 March 2015.

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Accounting Basics: B4 a publicly quoted company has 750000 ordinary shares of
Reference No:- TGS02761957

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