P Ltd is an Australian listed company. Its results for the financial year ending
ID: 2601871 • Letter: P
Question
P Ltd is an Australian listed company. Its results for the financial year ending 30 June 2019 have exceeded expectations—profit before tax is $5.597 million and income tax expense is $1.847 million. As at 30 June 2018, there were 9.75 million ordinary shares on issue. On 11 May 2019, 3.25 million further ordinary shares were issued at a price of $2.30—paid to $2.00. The partly paid shares carry rights to dividends in proportion to the amount paid relative to the total issue price.
REQUIRED Calculate the basic EPS for P Ltd for the year ending 30 June 2019.
how can i get earing price ? (after tax)
Explanation / Answer
First we have to calculate the proportionate no of equity shares that qualify for dividends.
No of days from 11 May 2019 to 30 June 2019 = 51 days
Calculation of proportionate shares = 3.25 million * ( 2/2.3) * ( 51/365) = 0.39 million
Total ordinary shares = 9.75 million + 0.39 million = 10.14 million
Profit after tax = Profit before tax - Tax = $5.597 million - $1.847 million = 3.75 million
Earnings per share = Profit after tax/ No of ordinary shares
= $ 3.75 million / 10.14 mllion shares = $0.36 per share
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