Facts
Entity A has a profit after tax of $15 million for the year ended December 31, 20X2. These appropriations of profit have not been included in this amount:
|
$m |
|
|
(1) Arrears of cumulative preference dividend for 2 years ended December 31,20X2 |
4 |
|
(2) Ordinary dividends |
5 |
|
(3) Preference share premium payable on redemption—appropriation of profit |
1 |
|
(4) Exceptional profit (net of tax) |
4 |
These share transactions occurred during the year ended December 31, 20X2. The entity had 3 million ordinary shares of $1 outstanding at January 1, 20X2:
|
Ordinary shares |
|||
|
Date |
issued/purchased |
||
|
January 1 |
250,000 |
Issued at $5 per share $1 paid to date: entitled participate |
|
|
in dividends to the extent paid up |
|||
|
April 1 |
600,000 |
Full market price $3 per share issue |
|
|
July 1 |
(400,000) |
Purchase of own shares at $3.5 per share |
|
Required
Calculate basic earnings per share.