4

Question 4 (7%) Pandar plc is expanding rapidly. In order to support its expansion, the company has made a 1 for 4 rights issue at a price of $4 per share on 1 July 2018. The market price of the share on the last day of quotation with the rights was $5.60. The company has in issue 60 million 5% $1 preference shares which can be converted into ordinary shares at one ordinary share for every three preference shares held. The number of ordinary shares on 1 October 2017 was 330 million. Net profit after tax for the year ended 30 September 2018 was $199,500,000. Required Calculate the basic earnings per share (EPS) and the diluted EPS for the year ended 30 September 2018 (Total: 7 marks)