EPS: Comprehensive Problem Duncan Ltd. has 750,000 ordinary shares of $4 cach in issue throughout its financial year ended 31 December 2013. The following are the other particulars in 2014: 1 April 2014: New issue of 250,000 ordinary shares at full market price of $4; 1 September 2014: Bonus issue made of 3 for 5 1 November 2014: Rights Issue 1:5, exercise price $5.5; the market price before rights issue $6.50. 70,000 8.5% convertible preference shares of $10 cach in issue from 01 August 2013. Each preference share is convertible into 2 ordinary shares. $4,000,000 10% convertible loan notes were in issue from 01 April 2013. Each S5 loan note is convertible into two ordinary shares. Options granted on 1 October 2013 to the company's senior management giving them the right to subscribe for 600,000 ordinary shares at a cost of $6.5 cach. The statement of comprehensive income of Duncan for the year ended 31 December 2014 reports a net profit after tax of $928,500. Net profit after tax for 2013 is $750,000. Tax on profits is 30%. The average market price of Duncan's ordinary shares was: $8.5 for the year ended 31 December 2013. $7.5 from January to September 2013 $7.0 from October to December 2013 S8 for the year ended 31 December 2014. $8.5 from January to September 2014 $7.5 from October to December 2014 Required: Calculate Duncan's actual and restated basic and diluted earnings per share as would appear on the Income Statement for the year ended 31 December 2014. Income Statement Actual 2020: NA Forecast 2021 2019 3 4 5 6 Revenue growth 7 COGS/Sales 8 2020 Forecast 2021 15.0% (1) $ million Sales Cost of Goods Sold Gross Profit Selling and G&A Expenses 900.00 612.00 288.00 (13) (14) 12] 171.00 (15) 13) (16) Depreciation Expense EBIT 31.30 85.70 (4) (17) 9 SG&A/Sales Depreciation/Lag net LO PP&E 11 Interest expense/Lag Total 12 Debt 13 Effective Tax Rate 14 Tax/EBT) 15 16 17 18 19 2020 Interest Expsense Earnings Before Taxes 7.50 78.20 (5) Taxes Net Income (18) 30.80 47.40 (19) Balance Sheet Forecast 2021 Forecast 2021 12019 2020: (20) (6) :17] 18] 20 Cash/Sales 21 AR/Sales 22 Inventory/COGS 23 24 Net PP&E/Sales 25 Assets Cash and Marketable Securities Accounts Receivable Inventory Total Current Assets Net Fixed Assets Total Assets Liabilities and Owner's Equity 10.69 12.30 85.80 111.00 69.70 75.50 166.19: 198.80 626.10 720.00 792.29918.80 (21) (22) (9) (23) (10) Accounts Payable 33.70 44.10 (24) (11) (25) 26 Accounts 27 Payable/COGS Short-Term 28 Debt/Total Assets 29 30 Balancing Figure 31 32 83 RE+NI-DIV (26) Short Term Debt Total Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Earnings 14.07 19.40 47.77: 63.50 151.62 215.00 : 199.39, 278.50 320.00 320.00 272.90 320.30 (27) (28) 34 Other Assumptions (29) Total Shareholder's Equity : 592.90640.30 Total Liabilities and Owner's Equity 792.29: 918.80 (30) 35 dividend 36 EPS: Comprehensive Problem Duncan Ltd. has 750,000 ordinary shares of $4 cach in issue throughout its financial year ended 31 December 2013. The following are the other particulars in 2014: 1 April 2014: New issue of 250,000 ordinary shares at full market price of $4; 1 September 2014: Bonus issue made of 3 for 5 1 November 2014: Rights Issue 1:5, exercise price $5.5; the market price before rights issue $6.50. 70,000 8.5% convertible preference shares of $10 cach in issue from 01 August 2013. Each preference share is convertible into 2 ordinary shares. $4,000,000 10% convertible loan notes were in issue from 01 April 2013. Each S5 loan note is convertible into two ordinary shares. Options granted on 1 October 2013 to the company's senior management giving them the right to subscribe for 600,000 ordinary shares at a cost of $6.5 cach. The statement of comprehensive income of Duncan for the year ended 31 December 2014 reports a net profit after tax of $928,500. Net profit after tax for 2013 is $750,000. Tax on profits is 30%. The average market price of Duncan's ordinary shares was: $8.5 for the year ended 31 December 2013. $7.5 from January to September 2013 $7.0 from October to December 2013 S8 for the year ended 31 December 2014. $8.5 from January to September 2014 $7.5 from October to December 2014 Required: Calculate Duncan's actual and restated basic and diluted earnings per share as would appear on the Income Statement for the year ended 31 December 2014. Income Statement Actual 2020: NA Forecast 2021 2019 3 4 5 6 Revenue growth 7 COGS/Sales 8 2020 Forecast 2021 15.0% (1) $ million Sales Cost of Goods Sold Gross Profit Selling and G&A Expenses 900.00 612.00 288.00 (13) (14) 12] 171.00 (15) 13) (16) Depreciation Expense EBIT 31.30 85.70 (4) (17) 9 SG&A/Sales Depreciation/Lag net LO PP&E 11 Interest expense/Lag Total 12 Debt 13 Effective Tax Rate 14 Tax/EBT) 15 16 17 18 19 2020 Interest Expsense Earnings Before Taxes 7.50 78.20 (5) Taxes Net Income (18) 30.80 47.40 (19) Balance Sheet Forecast 2021 Forecast 2021 12019 2020: (20) (6) :17] 18] 20 Cash/Sales 21 AR/Sales 22 Inventory/COGS 23 24 Net PP&E/Sales 25 Assets Cash and Marketable Securities Accounts Receivable Inventory Total Current Assets Net Fixed Assets Total Assets Liabilities and Owner's Equity 10.69 12.30 85.80 111.00 69.70 75.50 166.19: 198.80 626.10 720.00 792.29918.80 (21) (22) (9) (23) (10) Accounts Payable 33.70 44.10 (24) (11) (25) 26 Accounts 27 Payable/COGS Short-Term 28 Debt/Total Assets 29 30 Balancing Figure 31 32 83 RE+NI-DIV (26) Short Term Debt Total Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Earnings 14.07 19.40 47.77: 63.50 151.62 215.00 : 199.39, 278.50 320.00 320.00 272.90 320.30 (27) (28) 34 Other Assumptions (29) Total Shareholder's Equity : 592.90640.30 Total Liabilities and Owner's Equity 792.29: 918.80 (30) 35 dividend 36