CIMAPRA19-F02-1 Exam - Topic 1 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 72
Topic #: 1

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?

A23.8 cents

B36.8 cents

C26.3 cents

D29.4 cents

Show Suggested Answer

Suggested Answer: A, B

by Virgie at Jul 27, 2023, 03:44 AM

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Billi

6 months ago

Not so sure about that, could be option D too!

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Chantay

6 months ago

I agree, B seems right based on the figures.

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Leah

7 months ago

Wait, how do we get to that number?

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Cecily

7 months ago

I think it's definitely option B!

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Tayna

7 months ago

Earnings per share calculation is key here!

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Susy

7 months 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!

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Stephen

8 months 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.

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Chara

8 months 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.

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Noel

8 months 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.

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Sarah

8 months 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.

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Maybelle

8 months 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.

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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!

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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!

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Florinda

11 months ago

C) 26.3 cents

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Eura

11 months ago

Let's do the math and figure out the correct answer.

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Elbert

11 months ago

B) 36.8 cents

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Ines

12 months ago

I don't think it's all of the above, maybe we should calculate it.

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Man

12 months ago

A) 23.8 cents

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Patria

1 year 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!

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Jamie

11 months ago

D) 29.4 cents

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Christiane

11 months ago

I'm going with C, the numbers make sense to me.

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Aileen

12 months ago

C) 26.3 cents

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Mariko

12 months ago

No, I don't think it's B. A seems more likely.

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Beth

12 months ago

B) 36.8 cents

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Sonia

12 months ago

I think it's A too, the numbers do seem too perfect.

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Helaine

12 months ago

A) 23.8 cents

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Pauline

1 year ago

I'm not sure about C, maybe it's a trick question after all.

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Leonora

1 year ago

C) 26.3 cents

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Zena

1 year ago

I think it's A too, the numbers do seem too perfect.

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Quiana

1 year ago

A) 23.8 cents

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Keneth

1 year 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.

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Nan

1 year ago

I'm not sure, but I believe it's 23.8 cents.

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Brynn

1 year 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?

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Elenora

1 year ago

Allene: Yes, I found it. Let's calculate the earnings per share now.

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Scot

1 year ago

User 3: So, did you find your calculator to do the calculations?

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Allene

1 year ago

User 2: Yeah, that's right. It's an important step in determining the EPS.

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Candra

1 year ago

User 1: I think we need to calculate the weighted average of the shares to get the correct earnings per share.

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Filiberto

1 year ago

I calculated it to be 29.4 cents.

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Sabina

1 year ago

I think the earnings per share is 26.3 cents.

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