The financial statements of M&S (GBR) are presented in Appendix A. The company’s complete annual report, including the notes to the financial statements, is available online.

Instructions Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

(a) Under M&S’s share-based compensation plan, share options are granted annually to key managers and directors.

(1) How many options were granted during 2013 under the plan?

(2) How many options were exercisable at year-end 2013?

(3) How many options were exercised in 2013, and what was the average price of those exercised?

(4) How many years from the grant date do the options expire?

(5) To what accounts are the proceeds from these option exercises credited?

(6) What was the number of outstanding options at year-end 2013, and at what average exercise price?

(b) What number of diluted weighted-average shares outstanding was used by M&S in computing earnings per share for 2013 and 2012? What was M&S’s diluted earnings per share in 2013 and 2012?

(c) What other share-based compensation plans does M&S have?

Data From Appendix A 

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APPENDIX A Specimen Financial Statements: Marks and Spencer Group plc Financial statements Consolidated income statement Revenue Operating profit Finance income Finance costs Profit before tax Income tax expense Profit for the year Attributable to: "Equity shareholders of the Company Non-controlling interests Basic earnings per share Diluted earnings per share 52 weeks ended 30 March 2013 52 weeks ended 31 March 2012 Notes 2,3 m 10,026.8 m 9,934.3 2,3 756.0 746.5 66 6 26.5 (218.2) 48.3 (136.8) 4 564.3 658.0 (106.3) (168.4) 458.0 489.6 ico ico 466.7 513.1 (8.7) (23.5) 458.0 489.6 29.2p 32.5p 29.0p 32.2p