Calculate bra basic and diluted earnings per share figures


Problem

Bra, 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: 3:2 share split;

- 1 November: Bonus issue made of 2 for 5

- 100,000 8.5% convertible preference shares of $10 each in issue. Each preference share is convertible into 15 ordinary shares.

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

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

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Accounting Basics: Calculate bra basic and diluted earnings per share figures
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