Two companies, A plc and B plc, both have capital of 10,000. A plc has it all

Question:

Two companies, A plc and B plc, both have capital of €10,000. A plc has it all in the form of equity shares of €1 each, B plc has 5,000 €1 equity shares and €5,000 of 10% debentures.

Both companies earn profits of €5,000 in year 1 and €2,000 in year 2.

Tax is assumed at 35% and the dividend paid is 10 cent per share.

The capital position is therefore as follows:

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Requirement What is the EPS in each year?

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International Financial Accounting And Reporting

ISBN: 9781912350025

6th Edition

Authors: Ciaran Connolly

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Question Posted: Sep 14, 2024 04:30 AM

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Two companies, A plc and B plc, both have capital of 10,000. A plc has it all

Question:

Shares A plc 10,000 B plc 5,000 Debentures 5,000 10,000 10,000

Step by Step Answer:

International Financial Accounting And Reporting

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