On 1 January 2021, Pipitea Limited has 60,000 ordinary shares on issue. The company announced a one-for-five rights issue on 1 February 2021 with an exercise price of $4 for each right. The last date to exercise the right is 1 May 2021 The market price of one ordinary share immediately before the exercise of the rights on 30 April 2021 was $6. At the end of the current reporting period 31 December 2021, Pipitea Limited determined $299,000 profit attributable to ordinary shareholders. The basic Earnings per Share (EPS) for the year ended 31 December 2020 was $4.25

Required:

a. Determine the theoretical ex-right value per share and the rights adjusted factor

b. Calculate the basic Earnings per Share (EPS) for Pipitea Limited and show the comparative EPS figure for 2020.