The financial statements of M&S are presented in Appendix E. 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. What is M&S’s accounting policies related to share-based payments?

2. How many options were granted during 2017 under the plan?

3. How many options were exercisable at 1 April 2017?

4. How many options were exercised in 2017, and what was the average price of those exercised?

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

6. What was the number of outstanding options at 1 April 2017, 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 2017 and 2016?

c. What was M&S’s diluted earnings per share in 2017 and 2016?