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Test 9 Sol

The document presents the Earnings Per Share (EPS) calculations for the years 2021 and 2022, detailing both basic and diluted EPS figures. For 2021, the basic EPS is reported as Rs. 3.60/share and diluted EPS as Rs. 3.05/share, while for 2022, the basic EPS is Rs. 2.69/share and diluted EPS is Rs. 2.53/share. Additionally, it includes weighted average shares and a ranking of potential ordinary shares based on their impact on EPS.

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hiddenseceret7
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6 views

Test 9 Sol

The document presents the Earnings Per Share (EPS) calculations for the years 2021 and 2022, detailing both basic and diluted EPS figures. For 2021, the basic EPS is reported as Rs. 3.60/share and diluted EPS as Rs. 3.05/share, while for 2022, the basic EPS is Rs. 2.69/share and diluted EPS is Rs. 2.53/share. Additionally, it includes weighted average shares and a ranking of potential ordinary shares based on their impact on EPS.

Uploaded by

hiddenseceret7
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Solution 1: EPS for 2021 (Originally reported)

Basic EPS ⇒ 210 = Rs. 3.60/share


58.34(W-1)

Diluted EPS ⇒ 210+60(500×12%) 270


58.34+30(10×3) = 88.34 = Rs. 3.05/share

EPS for 2022:

Basic EPS ⇒ 250


92.84(W-2) = Rs. 2.69/share

Diluted EPS (after ⇒ 250+20(300×10%×8÷12) 270 Rs. 2.53/share


= =
including bond) 92.84+14(3×7×8÷12) 106.84 Dilutive
Diluted EPS (after 270+60(500×12%) 330
including preference ⇒ 106.84+30(10×3) = 136.84 = Rs. 2.41/share
shares) Dilutive

EPS for 2021 (Reported as comparative in 2022)

Basic EPS ⇒ 210 210


58.34× (30/27.14) = 64.48 = Rs. 3.26/share

Diluted EPS ⇒ 210+60(500×12%) 270 Rs. 2.86/share


64.48+30(10×3) = 94.48 = Dilutive

W-1: 2021
Date Description Shares Fraction Wt average no
of shares
1 July 2020 New shares 50 × 7/12 29.16
1 Feb 2021 New shares 20
70 × 5/12 29.16

58.34

W-2: 2022
Date Description Shares Fraction Wt average no
of shares
1 July 2021 opening 70 × 3/12 × 30/27.14 19.34
1 Oct 2021 New shares 28
(right 40%)
98 × 9/12 73.5
92.84

W-3:
Before 100 30 3000
New 40 20 800
After 140 27.4 3800

W-4: Ranking of potential ordinary shares


Description Increase in Increase in Incremental Rank
earnings shares EPS
Rs. in million In million
Preference shares 60 30 Rs. 2/share 2
Convertible bonds 20 14 Rs. 1.43/share 1

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