Answer to Question #128064 in Accounting for Kwizera

Question

QUESTION 1
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date it had in issue $2,300,000
10% convertible loan stock. Conversion will be in 2007 Assume a corporation tax rate of 30%.
The earnings for the year were $2,208,000.
This loan stock will be convertible into ordinary $1 shares in 2007 as 90 $1 shares for $100
nominal value loan stock
Required:
Calculate the fully DEPS for the year ended 31st December 2004
QUESTION 2
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date there were outstanding
options to purchase 920,000 ordinary $1 shares at $1.7 per share. The average fair value of
ordinary shares was $1.80. Earnings for the year ended 31st December 2004 were $2,208,000.
Required
Calculate the fully DEPS for the year ended 31st December, 2004

Answer 1

Dear Kwizera, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order