You are provided with the following information relating to Brown plc:

On 1 July 2023, Brown made a rights issue of one ordinary share for every five ordinary shares in issue at a price of £3.50 per share. The share issue was fully subscribed. At 30 June 2023, the market price of one share in Brown was £4.00.
In addition, Brown has previously issued £1,000,000 of 7% convertible loan stock. This is convertible in 2025 at the rate of 1 ordinary share for every £10 of loan stock. The rate of tax payable by the company is 20%.

Required:
(a) Calculate basic EPS for the year to 31 December 2023.
(b) Calculate original and restated basic EPS for the year to 30 December 2022.
(c) Calculate diluted EPS for the year to 31 December 2023.

Transcribed Image Text:

Profit after tax for year to 31 December Number of ordinary shares in issue at 1 January 2023 £1,560,000 2,000,000 2022 £1,320,000 2,000,000