XYZ plc had an issued share capital of 1 million ordinary shares at 1 January 2020. The nominal value was 50p and the market value 2 per share. On 30 June 2020, the company offered a 1:2 rights issue (e.g., one new share for every two shares held) at a price of 100p per share. The post-tax earnings were 3m and 4m for 2019 and 2020, respectively. Required: a) Calculate the basic EPS for XYZ plc 31 December 2020, in accordance with best accounting practice. b) What is the bonus element for shareholders? [20 marks] [5 marks]