Appleton Enterprise Limited has 200,000 ordinary shares ($1.00 par value) of outstanding and fully paid up as at January 1, 2013. Appleton Enterprise Limited issued 70,000 ordinary shares of $10 each on July 1 2013 at full market value fully paid in cash. 75,000 ordinary shares issued as a bonus on 1 August 2013 and the net income for 2013 was $1.5m. On October 1, 2014 the company bought back 45,000 ordinary shares at full market value. There were 500,000 15 % cumulative preference shares at par value of $5 each at January 1, 2013. The net income for 2014 was $1.8m.

Required:

1. Calculate the weighted average number of shares for both year 2013 and 2014 (12 marks)

2. Calculate the EPS for year 2013 and 2014 (8 marks)