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TASK 2: Redang Bhd has 10,000,000 ordinary shares in issue on 1 January 2018. No new shares were issued during the year, but there
TASK 2: Redang Bhd has 10,000,000 ordinary shares in issue on 1 January 2018. No new shares were issued during the year, but there were 2,000,000 outstanding share options at RM3 per share. The market value was RM3.50 per share. Profit before tax for the year ended 31 December 2018 was RM3,500,000. Tax is at the rate of 30%. To fund an upcoming new project, Redang Bhd decided to issue 2,000,000 ordinary shares, amounting to RM2,800,000 and RM2,000,000 of convertible 6% bonds on 1 April 2019. These are convertible into ordinary shares at the following rates: On 31 March 2024 On 31 March 2025 25 shares for every RM100 bonds 20 shares for every RM100 bonds Profit after tax in the financial year to 31 December 2019 was RM4,200,000. Redang Bhd made a 1 for 5 bonus issue on 1 July 2020 as an appreciation to all the shareholders for their trust towards the entity. The market value of the ordinary shares is RM3.80 and profit after tax is RM4,800,000 for the year ended 2020. On 1 July 2021, the entity made a rights issue of one new ordinary shares for every three ordinary shares at a price of RM3.00. The market price of the ordinary shares was 3.80 each. The profit after tax for the year was RM4,816,000. Required: Compute Basic Earnings Per Share (BEPS) and Diluted Earnings Per Share (DEPS) for financial years 2018 to 2021. Restate the comparative whenever relevant. (35 marks)
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