The following is an extract from the accounts of Jay plc for the year ended 31 December 2016:

Profit after taxation 1,400,000

Non-controlling (minority) Interests 300,000

1,100,000

Dividends:

Ordinary 10,000

Preference 5,000 15,000

Retained Profit 1,085,000

Notes

On 1 January 2016, the share capital of Jay plc comprised 1,000,000 ordinary shares of 25p each, in issue.

On 31 March 2016, there was a bonus issue of 1 new ordinary share for every 4 held.

On 1^st September 2016, there was an issue of one million 25p ordinary shares for cash at full market price.

A rights issue was made to the ordinary shareholders on the 31^st October 2016, at 50 pence per share, on the basis of one share for every four held. The fair value price immediately before the rights issue was listed as 1.

The EPS figure for last year (2015) was 20 pence.

REQUIRED

a) Calculate the earnings per share figure for 2016.

b) Recalculate the earnings per share figure for the year 2015.

c) Discuss the usefulness of the Earnings per Share ratio as a measure of corporate performance, and the relevance of the Price-Earnings ratio.