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1. ATC PLC had an issued share capital at 1 May, 2014 of $63 million 25 cent equity shares. On 15 August, 2014 ATC made a 1 for 3 bonus issue followed on 1 October, 2014 by a 1 for 7 rights issue at 36 cents per share. Mid-market price on 1 October was 52 cents and the rate of corporate income tax was 25%.

Profit after tax for the year was $70m

What is the earnings per share figure for the year ended 30 April, 2015?

2. Temora PLC had an issued share capital at 1 April, 2014 of $42 million 50 cent equity shares. On 15 August, 2014 Temora PLC made a 2 for 5 bonus issue followed on 1 November by an issue at full market price of 20 million shares at 75 cents each.This was followed on 1 January, 2015 by a 1 for 4 rights issue at 60 cents per share exercise price. Mid-market price at the start of 2015 was 80 cents.

What is the weighted average number of shares in issue for Temora PLC in the year to 31 March, 2015?
3. Grey PLC had an issued share capital at 31 December, 2015 of $52 million equity shares of $1 each. On 1 March, 2015 Grey PLC had made a 2 for 5 bonus issue followed on 31 July by an issue at full market price of 10 million shares at $1.75 each.What is the weighted average number of equity shares in issue for Grey PLC in the year to 31 December, 2015?
4. Many commentators believe that the trend of earnings per share (EPS) is a more reliable indicator of underlying performance than the trend of net profit for the year

Which of the following statements supports this view?

5. Aqua Co has correctly calculated its basic earnings per share (EPS) for the current year.Which of the following items need to be additionally considered when calculating the diluted EPS of Aqua Co for the year?

1. A 1 for 5 rights issue of equity shares during the year at $1.20 when the market price of the equity shares was $2.00
2. The issue during the year of a convertible (to equity shares) loan note
3. The granting during the year of directors' share options exercisable in three years' time
4. Equity shares issued during the year as the purchase consideration for the acquisition of a new subsidiary company

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