Gce Model Questions Vol1 2018 Financial Accounting Question 29
Practice objective / multiple choice question 29 from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
XYZ Ltd has 1,200,000 ordinary shares of £1 each at the start of the year. The following transactions occurred during the year:\n- 10 % bonus issue on 1 July (issued out of retained earnings);\n- Rights issue opened on 1 Oct: one new share for every four held at a subscription price of £0.80, fully subscribed and allotted on 31 Oct;\n- Purchase of 30,000 treasury shares on 15 Dec at £1.20 each (held at cost);\n- Profit before tax £180,000, tax rate 30 %;\n- Dividend of £0.10 per share (excluding treasury shares) paid on 20 Dec.\nCalculate the earnings per share (EPS) for the year, using the weighted‑average number of shares outstanding. Present the EPS to two decimal places.
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About This Question
This is Gce Model Questions Vol1 2018 Financial Accounting Question 29. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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