Section B: Problem Solving $(40$ Marks$)$

$1.$ Delta Corp had $150,000$ shares in issue at the beginning of the year. On July $1,20$X$2,$ Delta Corp declared a $1-$for$-4$ rights issue at a price of $$2$ per share. The market value on the last day of quotation with rights was $$3\mathrm{.}50.$ The earnings for the year ended December $31,20$X$2$ were $$180,000.$ Calculate the EPS for the year ended December $31,20$X$2$ and compare it with the EPS for the year ended December $31,20$X$1$ when earnings were $$150,000$ and no new issues occurred.

$2.$ Omega Ltd had $250,000$ shares outstanding at the beginning of the year. On June $1,20$X$3,$ the company made a $2-$for$-5$ rights issue at a price of $$4$ per share. The market value on the last day of quotation with rights was $$6.$ The company's earnings for the year ended December $31,20$X$3,$ were $$400,000.$ Calculate the EPS for the year ended December $31,20$X$3,$ and compare it with the EPS for $20$X$2$ when the earnings were $$350,000$ and there were no new issues.

$3.$ Brains Co had $100,000$ shares in issue but then made a $1-$for$-5$ rights issue on October $1,2002,$ at a price of R$1.$ The market value on the last day of quotation with rights was R$1\mathrm{.}60.$ Calculate the EPS for the year ended December $31,20$X$2,$ and the corresponding figure for $2001,$ given total earnings of R$50,000$ in $20$X$2$ and R$40,000$ in $2001.$

$4.$ Alpha Ltd had $200,000$ shares outstanding at the beginning of the year. On April $1,$ the company declared a $1-$for$-3$ rights issue at R$2$ per share, and the market value on the last day of quotation with rights was R$3\mathrm{.}50.$ The company's earnings for the year were R$300,000.$ Calculate the EPS for the year ended December $31,20$X$4,$ and compare it with the EPS for $20$X$3$ when the earnings were R$250,000$ and there were no new issues.