Question
In connection with MFRS 133, Earnings per Share: Define the profit used to calculate basic EPS and explain the relationship between EPS and price/earnings (PE)
In connection with MFRS 133, Earnings per Share:
- Define the profit used to calculate basic EPS and explain the relationship between EPS and price/earnings (PE) ratio.
(10 marks)
- The following information relates to Alpha Berhad:
Statement of comprehensive income for the year ended 31 March 2017
RM000
Profit before taxation 1,000
Taxation (420)
----------
Profit after taxation 580
======
Additional information:
The issued share capital of Alpha Berhad as at 1 April, 2016 are:
16,000,000 Ordinary shares of 25 sen each
1,000,000 10% cumulative preference shares of RM 1 classified as equity
1 July 2016, Bonus issue of ordinary shares issued, 1 for 5
1 October 2016, market purchase of 500,000 of own shares at a price of RM 1.00 per share Required:
On the basis of the facts given, compute the basic EPS figures for 2017.
(15 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started