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Question:
The income statements of SNT Company show the following amounts of net profit of the years ending December 31:
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On January 1, 2009, the number of shares outstanding was 1,000,000. During the year 2009, the company announced a right issue with the following details:
Rights: 1 new share for each 5 outstanding
Exercise price: Rs. 10 per share
Last date to exercise rights: March 1, 2009 (10 months outstanding)
Market price on March 1, 2009: Rs. 22
Required:
Calculate Earning per Share (EPS) for the years 2008, 2009 and 2010.
Last edited by viki; 07-21-2010 at 03:40 PM.
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