Explain what is diluted EPS

Assignment Help Accounting Basics
Reference no: EM132571424

Question - Alps Ltd has a net income after tax of $1 500 000 for the year ended 30 June 2019. At the beginning of the period Alps Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 December 2018 Alps Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2019 Alps Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings. The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Alps Ltd also had 500 000, $1.00, 8% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2018 was $1.50 per share.

Required -

a) Calculate the basic EPS amount for 2019 and provide the adjusted comparative EPS for 2018.

b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.

Reference no: EM132571424

Questions Cloud

What accounts for the success of the aquafresh product : What accounts for the success of the Aquafresh product?
What is time management : What is time management? In bullet forms what is the importance of time management? In bullet forms
Which product or products should be sold at spilt-off point : Which product or products should be sold at the spilt-off point, and which product or products should be processed further? Show computations.
Developing contingency plans : Explain the factors to be taken into account in developing contingency plans when delivering presentations.
Explain what is diluted EPS : On 1 March 2019 Alps Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings. Explain what is diluted EPS
Who were the stakeholders in this change : Discuss what concerns different stakeholders might have and how communication is needed to address those concerns.
Analyze the financial condition of the organization : A manager has many tools available to analyze the financial condition of the organization.
What are the balances of the deferred tax liability : At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000. What are the balances of the deferred tax liability
Identify specific healthcare organization : Identify a specific healthcare organization, What are the typical duties and responsibilities of financial managers within a healthcare organization?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd