Year 2022: At the beginning of the reporting period, it has $5 million of share capital and 1.5 million ordinary shares
Posted: Wed Apr 27, 2022 10:41 am
Year 2022:
At the beginning of the reporting period, it has $5 million of
share capital and 1.5 million ordinary shares outstanding. On 1
April 2022, the company announces a bonus issue of 2 shares for
every share held on that date. By the end of the year Himalaya
Ltd.’s profit attributable to ordinary shareholders amounts to
$5,250,000.
Year 2023:
Himalaya Ltd. needs to raise funds for expansion of its
business. Ms. Natasha Romanoff, CEO and Mr. Clint Barton, CFO have
decided to make a non-renounceable rights issue to existing
shareholders of 250,000 new shares at an issue price of $20 per
share.
Goldman Sachs has agreed to fully underwrite the rights issue.
Himalaya Ltd issued a prospectus on 1 February 2023 and
applications closed on 3 April 2023. Costs associated with the
rights issue and the eventual issue of the shares were $45,000.
For the year ending December 2022, calculate the 2022
basic earnings per share amounts that Himalaya Ltd. must disclose
in its financial statements for the year ended 31 December
2022.
At the beginning of the reporting period, it has $5 million of
share capital and 1.5 million ordinary shares outstanding. On 1
April 2022, the company announces a bonus issue of 2 shares for
every share held on that date. By the end of the year Himalaya
Ltd.’s profit attributable to ordinary shareholders amounts to
$5,250,000.
Year 2023:
Himalaya Ltd. needs to raise funds for expansion of its
business. Ms. Natasha Romanoff, CEO and Mr. Clint Barton, CFO have
decided to make a non-renounceable rights issue to existing
shareholders of 250,000 new shares at an issue price of $20 per
share.
Goldman Sachs has agreed to fully underwrite the rights issue.
Himalaya Ltd issued a prospectus on 1 February 2023 and
applications closed on 3 April 2023. Costs associated with the
rights issue and the eventual issue of the shares were $45,000.
For the year ending December 2022, calculate the 2022
basic earnings per share amounts that Himalaya Ltd. must disclose
in its financial statements for the year ended 31 December
2022.