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On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4JKissued 600,000 ordinaryshares at the market value of $2.50a share. For the financial year ended 31 December 20X4 the statement of profit or loss showsprofit before tax of $625,000 and profit after tax of $500,000.
What is the earnings per share for the year ended 31 December 20X4?
Suggested Answer: A, B
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39 comments · newest first
BI
Billi
11 months ago
Not so sure about that, could be option D too!
CH
Chantay
11 months ago
I agree, B seems right based on the figures.
LE
Leah
12 months ago
Wait, how do we get to that number?
CE
Cecily
12 months ago
I think it's definitely option B!
TA
Tayna
1 year ago
Earnings per share calculation is key here!
SU
Susy
1 year ago
I feel like I might be mixing up the calculations. Was it profit before tax or after tax that we used for EPS? I hope I remember it right!
ST
Stephen
1 year ago
If I remember correctly, we had a similar practice question where we had to adjust for shares issued during the year. I think we should average the shares.
CH
Chara
1 year ago
I think we need to take the profit after tax and divide it by the total number of shares at the end of the year, but I can't recall the exact number of shares.
NO
Noel
1 year ago
I remember we calculated earnings per share in class, but I'm not sure if we included the new shares issued in the average calculation.
SA
Sarah
1 year ago
Okay, I've got a strategy for this. I'll navigate to the /dev/disk/by-uuid directory and list out the contents to see the available UUIDs.
MA
Maybelle
1 year ago
Okay, let me think this through. The question is asking for three runtime metrics, so I'll need to identify the options that fit that criteria. I'll make sure to read each one carefully.
GO
Golda
1 year ago
Wait, what? Earnings per share? I thought this was a bake-off competition. Time to whip up some delicious financial statements!
EI
Eileen
1 year ago
I bet the answer is 'all of the above' and they're just trying to see if we can spot the trick. Gotta keep my wits about me!
FL
Florinda
1 year ago
C) 26.3 cents
EU
Eura
1 year ago
Let's do the math and figure out the correct answer.
EL
Elbert
1 year ago
B) 36.8 cents
IN
Ines
1 year ago
I don't think it's all of the above, maybe we should calculate it.
MA
Man
1 year ago
A) 23.8 cents
PA
Patria
2 years ago
Hold on, is this a trick question? The numbers seem a bit too perfect. Maybe they're trying to lure us into a trap!
JA
Jamie
1 year ago
D) 29.4 cents
CH
Christiane
1 year ago
I'm going with C, the numbers make sense to me.
AI
Aileen
1 year ago
C) 26.3 cents
MA
Mariko
1 year ago
No, I don't think it's B. A seems more likely.
BE
Beth
1 year ago
B) 36.8 cents
SO
Sonia
1 year ago
I think it's A too, the numbers do seem too perfect.
HE
Helaine
1 year ago
A) 23.8 cents
PA
Pauline
1 year ago
I'm not sure about C, maybe it's a trick question after all.
LE
Leonora
1 year ago
C) 26.3 cents
ZE
Zena
1 year ago
I think it's A too, the numbers do seem too perfect.
QU
Quiana
1 year ago
A) 23.8 cents
KE
Keneth
2 years ago
Ah, the classic 'what's the EPS' question. Better brush up on my financial accounting, or I'll be singing the blues on this one.
NA
Nan
2 years ago
I'm not sure, but I believe it's 23.8 cents.
BR
Brynn
2 years ago
Hmm, looks like we need to calculate the weighted average of the shares to get the correct earnings per share. Let's see, where's my calculator?
EL
Elenora
1 year ago
Allene: Yes, I found it. Let's calculate the earnings per share now.
SC
Scot
1 year ago
User 3: So, did you find your calculator to do the calculations?
AL
Allene
1 year ago
User 2: Yeah, that's right. It's an important step in determining the EPS.
CA
Candra
2 years ago
User 1: I think we need to calculate the weighted average of the shares to get the correct earnings per share.
FI
Filiberto
2 years ago
I calculated it to be 29.4 cents.
SA
Sabina
2 years ago
I think the earnings per share is 26.3 cents.