a) b) Briefly comment on the difference between a rights issue and a bonus issue Kerry Plc had an issued share capital of 2,000,000 ordinary shares at January 1, 2017. The market value was $1.00. On March 31, 2017 the company made a rights issue of 1 for 4 at a price of $0.80 per share. The post-tax earnings were $4,500,000 and $5,000,000 for 2016 and 2017. Required: Calculate i) ii) The weighted average number of shares iii) iv) The theoretical ex-rights price The basic EPS for 2017 The basic EPS for 2016 (2 marks) (2 marks) (2 marks) (2 marks) (2 marks)

a) Briefly comment on the difference between a rights issue and a bonus issue (2 marks) b) Kerry Ple had an issued share capital of 2,000,000 ordinary shares at January 1,2017. The market value was $1.00, On March 31, 2017 the company made a rights issue of 1 for 4 at a price of $0.80 per share. The post-tax earnings were $4,500,000 and $5,000,000 for 2016 and 2017. Required: Calculate i) The theoretical ex-rights price (2 marks) ii) The weighted average number of shares (2 marks) iii) The basic EPS for 2017 (2 marks) iv) The basic EPS for 2016 (2 marks)