Earnings Per Share

SECTION A Beta Co had 5,000,000 ordinary shares in issue on 1 January 20X4. On 1 April 20X4, it made a 1-for-5 rights issue at $1.20 per share. The market value of the shares immediately before the rights issue was $1.80. Beta Co's profit after tax for the year ended 31 December 20X4 was $2,500,000. What is the basic Earnings Per Share (EPS) for the year ended 31 December 20X4? (Round to the nearest cent)

**Section A** Gamma PLC had 2,000,000 ordinary shares in issue on 1 January 20X5. On 1 April 20X5, it made a 1-for-4 bonus issue. On 1 October 20X5, it issued 300,000 shares at full market price. What is the weighted average number of shares to be used in calculating basic Earnings Per Share (EPS) for the year ended 31 December 20X5?

**Section A** Alpha Co has 10 million ordinary shares in issue. During the year, it had $5 million of 6% convertible bonds outstanding. The bonds are convertible into 2 million ordinary shares. The tax rate is 20%. Basic earnings for the year were $15 million. What is the diluted earnings per share (EPS)?