22207 Final: 22207 - Final Exam Notes
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L e c t u r e 5 : Eps = net profit/ average number of ordinary outstanding shares. Diluted eps (cid:150) assumes all convertible preference shares are converted to ordinary shares. Had 1200 shares for 6 months of the year (6/12) = 600. Had 1800 shares for 3 months of the year (3/12) = 450. Had 1400 shares for 3 months of the year (3/12) = 350 so had a weighted average of 1400 over the course of the year. Suppose that harvey norman issued 100 000 shares at per share under the following terms: (cid:149) per share, payable upon application for the shares due by 25 january 2015. Assume all applications were received by this date. (cid:149) per share, payable upon allotment of the shares. March 2015 and all monies due on allotment are received by 31 march. (cid:149) per share, payable when called by the company board.
