500,000 shares ofordinary share and 50,000 shares of6% cumulative preference share oufstanding. The preference share has a
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Question:
500,000 shares ofordinary share and 50,000 shares of6% cumulative preference share oufstanding. The preference share has a par value of S100pershareFalwell did not declare or pay any dividends during 20X8. Falwell's net income for the year ended December 31, 20X8 was $2.5 million. The incomefax rate is 40%. Falwell granted 10.000 share options to its executives on anuary I ofthis year. Each option gives its holder the right to buy 20 shares of ordinary share at an exercise price of$29 per share. The options vest after one year. The market price of the ordinary share averaged $30 per share during 20X8.
Requirements: a) What is Falwell's basic earnings per share for 20X8, rounded to the nearest cent?
b) Calculate DEPS
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