Alpha plc had an issued share capital of 2,000,000 ordinary shares at 1 January 20X1. The nominal

Question:

Alpha plc had an issued share capital of 2,000,000 ordinary shares at 1 January 20X1. The nominal value was 25p and the market value £1 per share. On 30 September 20X1 the company made a rights issue of 1 for 4 at a price of 80p per share. The post-tax earnings were £4.5m and £5m for 20X0 and 20X1 respectively.
Required:
(i) Calculate the basic earnings per share for 20X1.
(ii) Restate the basic earnings per share for 20X0.