Question 3

(a) Fire Wall Company Ltd has the following changes in its ordinary outstanding shares during 2019:

Date	Share changes	Share
1-January	Beginning balance	800,000
1-April	Issued additional shares	160,000
1-June	Re -purchased 240,000 shares from the Market	240,000
1 August	Issued Share Dividends 25%	180,000
1-October	Issued additional shares	80,000

Required

(1) Calculate the weighted average outstanding shares as of 31 December 2019. [10 marks]

(2) Calculate the earnings per share EPS, assume that the net income was $ 3,200,000 [5 marks]

(3) Explain the meaning of Complex Capital Structure, Diluted EPS (10 marks)