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The following financial information relates to Puma Limited ('Puma'): Number of paid-up ordinary shares at 1 January 2016 120,000,000 Number of paid-up preference shares at
The following financial information relates to Puma Limited ('Puma'): Number of paid-up ordinary shares at 1 January 2016 120,000,000 Number of paid-up preference shares at 1 January 2016 3,000,000 Required: For each of the following independent assumptions, determine the basic earnings per share and diluted earnings per share (if appropriate) for the year ended 31 December 2016: Assume that there was no change in the issued share capital in 2016. Assume that Puma made a rights issue of ordinary shares in proportion of one for every five shares held at $2 per share on 1 July 2016. The market price of the ordinary share immediately before the rights issue was $3 per share. Assume that Puma made no new issue of ordinary shares in 2016 but on 1 March 2016, Puma granted options to its directors to purchase 1.000.000 ordinary shares at $2 per share in 2017. The average share price of Puma's ordinary shares for the year ended 31 December 2016 was $ 5
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