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On 1st January 2019, Brown Plc., had in issue, 800,000 ordinary shares with a par value of sh. 10 each. On 31st October 2019 the
On 1st January 2019, Brown Plc., had in issue, 800,000 ordinary shares with a par value of sh. 10 each. On 31st October 2019 the company issued 100,000 ordinary shares at full market price at sh 20 each. On 31st December 2020, the directors decided to declare a bonus issue of 1 for 4. On 31st December 2021, the directors declared a rights issue of 1 for 5 at a price of sh. 20. On the day immediately before the rights issue took effect, the shares of this company were trading at sh. 25 each. Brown Plc. does not have any preference shares in issue.The post-tax earnings for the years 2019, 2020 and 2021 were 350,000 and 520,000 and 430,000 respectively. Required a. Compute the basic earnings per share for the years 2019, 2020 and 2021 b. From 'a' above, comment on the financial performance of this company, in each year.
On 1st January 2019, Brown Plc., had in issue, 800,000 ordinary shares with a par value of sh. 10 each. On 31st October 2019 the company issued 100,000 ordinary shares at full market price at sh 20 each. On 31st December 2020, the directors decided to declare a bonus issue of 1 for 4. On 31st December 2021, the directors declared a rights issue of 1 for 5 at a price of sh. 20. On the day immediately before the rights issue took effect, the shares of this company were trading at sh. 25 each. Brown Plc. does not have any preference shares in issue.The post-tax earnings for the years 2019, 2020 and 2021 were 350,000 and 520,000 and 430,000 respectively.
Required
a. Compute the basic earnings per share for the years 2019, 2020 and 2021
b. From 'a' above, comment on the financial performance of this company, in each year.
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