vee88
Aug 31, 2009, 04:50 AM
Hi There
I needed some help with this question. Its quite difficult and all the terms are confusing me.
The information provided is:
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On 1 July 2011, U Don’t Care Ltd had 100,000,000 fully paid $2 ordinary shares on issue.
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In 2008 employees were provided with options, at no initial cost, which gave them the right to acquire 2,500,000 shares at an exercise price of $2.30. Given the time remaining to the end of the 5 year period at which time the options will expire and the current share price, the directors believe that it is probable that all of the options will be exercised.
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In 2010 U Don’t Care Ltd issued 20,000,000 10 per cent cumulative preference dividend shares issued at $1.00 each and provide the shareholders with the right to convert 2 preference shares into 1 fully paid ordinary share. No preference shares were converted into ordinary shares in 2012.
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On 1 October, 2011 the company made a 1:10 rights issue to the fully paid ordinary shareholders at a subscription price of $2.10.
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10,000,000 $2 ordinary shares were issued on 15 April 2010, payable $1 on allotment. A call of 25 cents per share was made 1 March 2011 for which all call monies were received. A further call of 25 cents was made 1 March 2012, with all call monies due on 1 April 2012 being received.
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On 1 January 2012 the company made a 1:5 bonus issue on the fully paid shares on issue at 31 December, 2011.
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On 1 February, 2012 6,000,000 $2 ordinary shares were issued as fully paid for the purpose of acquiring a 20% interest in Fantastic Finishers Ltd.
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U Don’t Care Ltd issued $10 million of 10 per cent convertible debentures in 2010 at face value and which are convertible into 4,000,000 ordinary shares at the end of 5 years.
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The company repurchased 10,000,000 fully paid ordinary shares on 16 December 2011.
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U Don’t Care Ltd’s Constitution provides that partly paid ordinary shares are entitled to participate in dividends in proportion to the amount paid relative to the nominal value of the shares.
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The average market price of ordinary shares during the 2011/2012 financial year was $2.50.
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The net income for the year ended 30 June 2012 is 16293117.
��
The tax rate is 30 per cent.
what we have to do is work out basic and fully diluted earnings per share for the year ended 30 June 2012 in accordance with AASB 133.
I really have no idea but I tried to make sense of it.
what I tried to understand is that earnings for basic eps it determined after deducting prefernce share dividends. The weighted average number of ordinary sharesis the hardest and I don't know where to start. All I know is since it states that partly paid ordinary shares are entitled to participate in dividends so they should be included in working out WANO'S. Im also confused by the proportion of the year used to calculate the WANO'S. I would just like a basis to start on because I have all this information and terms and have no idea how to start this.
I needed some help with this question. Its quite difficult and all the terms are confusing me.
The information provided is:
��
On 1 July 2011, U Don’t Care Ltd had 100,000,000 fully paid $2 ordinary shares on issue.
��
In 2008 employees were provided with options, at no initial cost, which gave them the right to acquire 2,500,000 shares at an exercise price of $2.30. Given the time remaining to the end of the 5 year period at which time the options will expire and the current share price, the directors believe that it is probable that all of the options will be exercised.
��
In 2010 U Don’t Care Ltd issued 20,000,000 10 per cent cumulative preference dividend shares issued at $1.00 each and provide the shareholders with the right to convert 2 preference shares into 1 fully paid ordinary share. No preference shares were converted into ordinary shares in 2012.
��
On 1 October, 2011 the company made a 1:10 rights issue to the fully paid ordinary shareholders at a subscription price of $2.10.
��
10,000,000 $2 ordinary shares were issued on 15 April 2010, payable $1 on allotment. A call of 25 cents per share was made 1 March 2011 for which all call monies were received. A further call of 25 cents was made 1 March 2012, with all call monies due on 1 April 2012 being received.
��
On 1 January 2012 the company made a 1:5 bonus issue on the fully paid shares on issue at 31 December, 2011.
��
On 1 February, 2012 6,000,000 $2 ordinary shares were issued as fully paid for the purpose of acquiring a 20% interest in Fantastic Finishers Ltd.
��
U Don’t Care Ltd issued $10 million of 10 per cent convertible debentures in 2010 at face value and which are convertible into 4,000,000 ordinary shares at the end of 5 years.
��
The company repurchased 10,000,000 fully paid ordinary shares on 16 December 2011.
��
U Don’t Care Ltd’s Constitution provides that partly paid ordinary shares are entitled to participate in dividends in proportion to the amount paid relative to the nominal value of the shares.
��
The average market price of ordinary shares during the 2011/2012 financial year was $2.50.
��
The net income for the year ended 30 June 2012 is 16293117.
��
The tax rate is 30 per cent.
what we have to do is work out basic and fully diluted earnings per share for the year ended 30 June 2012 in accordance with AASB 133.
I really have no idea but I tried to make sense of it.
what I tried to understand is that earnings for basic eps it determined after deducting prefernce share dividends. The weighted average number of ordinary sharesis the hardest and I don't know where to start. All I know is since it states that partly paid ordinary shares are entitled to participate in dividends so they should be included in working out WANO'S. Im also confused by the proportion of the year used to calculate the WANO'S. I would just like a basis to start on because I have all this information and terms and have no idea how to start this.