07-21-2010, 03:36 PM
Assignment No. 02 Marks: 10
Question:
The income statements of SNT Company show the following amounts of net profit of the years ending December 31:
611.JPG (Size: 5.64 KB / Downloads: 106)
On January 1, 2009, the number of shares outstanding was 1,000,000. During the year 2009, the company announced a right issue with the following details:
Rights: 1 new share for each 5 outstanding
Exercise price: Rs. 10 per share
Last date to exercise rights: March 1, 2009 (10 months outstanding)
Market price on March 1, 2009: Rs. 22
Required:
Calculate Earning per Share (EPS) for the years 2008, 2009 and 2010.
Question:
The income statements of SNT Company show the following amounts of net profit of the years ending December 31:
611.JPG (Size: 5.64 KB / Downloads: 106)
On January 1, 2009, the number of shares outstanding was 1,000,000. During the year 2009, the company announced a right issue with the following details:
Rights: 1 new share for each 5 outstanding
Exercise price: Rs. 10 per share
Last date to exercise rights: March 1, 2009 (10 months outstanding)
Market price on March 1, 2009: Rs. 22
Required:
Calculate Earning per Share (EPS) for the years 2008, 2009 and 2010.