The following information relates to Raneb plc and Ahmose plc. The most recent financial year of each
Question:
The following information relates to Raneb plc and Ahmose plc. The most recent financial year of each company ended on 31 October 2023.
Raneb plc
The issued share capital of Raneb plc consists of 32,000,000 ordinary shares of 50 pence each and 3,000,000 11% preference shares of £1 each. The preference shares are not redeemable and are classified as equity in accordance with IAS32.
The directors of the company have been granted options which give them the right to subscribe for 8,000,000 ordinary shares at £1.50 a share in 2026.
According to the most recent financial statements of the company, earnings attributable to the shareholders for the year ended 31 October 2023 were £3,434,000. The average quoted price of Raneb plc's ordinary shares during the year ended 31 October 2023 was £1.95 per share.
Ahmose plc
On 1 November 2022, Ahmose plc had an issued share capital comprising 25 million ordinary shares of £1 each. Earnings attributable to the ordinary shareholders for the year ended 31 October 2023 were £8,000,000.
On 1 July 2023 Ahmose plc made a rights issue of two shares for every five shares held.
The price per share was £2.40. The market price of the shares prior to the rights issue was £2.80. The rights issue was fully subscribed and paid.
Required:
Calculate earnings per share figures for the year ended 31 October 2023 (calculated in accordance with IAS 33 Earnings per Share) for:
(a) Raneb plc (both basic and diluted)
(b) Ahmose plc.
Step by Step Answer:
International Financial Reporting a practical guide
ISBN: 9781292439426
8th Edition
Authors: Alan Melville