Aqua has correctly calculated its basic earnings per share (EPS) for the current year. Which of the following items need to be additionally considered when calculating Aqua's diluted EPS for the year? (1) A 1 for 5 rights issue of equity shares during the year at R1-20 when the market price of the equity shares was R2.00 (ii) The issue during the year of a convertible (to equity shares) loan note (iii) The granting during the year of directors' share options exercisable in three years' time (iv) Equity shares issued during the year as the purchase consideration for the acquisition of a new subsidiary company Select one: O a. All four O b. (i) and (ii) only c. (iii) and (iv) only d. (ii) and (iii) only

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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Aqua has correctly calculated its basic earnings per share (EPS) for the current year. Which of the following items need to be additionally considered when
calculating Aqua's diluted EPS for the year?
(i) A 1 for 5 rights issue of equity shares during the year at R1-20 when the market price of the equity shares was R2.00
(ii) The issue during the year of a convertible (to equity shares) loan note
(iii) The granting during the year of directors' share options exercisable in three years' time
(iv) Equity shares issued during the year as the purchase consideration for the acquisition of a new subsidiary company
Select one:
O a. All four
O b. (i) and (ii) only
c. (iii) and (iv) only
d. (ii) and (iii) only
Transcribed Image Text:Aqua has correctly calculated its basic earnings per share (EPS) for the current year. Which of the following items need to be additionally considered when calculating Aqua's diluted EPS for the year? (i) A 1 for 5 rights issue of equity shares during the year at R1-20 when the market price of the equity shares was R2.00 (ii) The issue during the year of a convertible (to equity shares) loan note (iii) The granting during the year of directors' share options exercisable in three years' time (iv) Equity shares issued during the year as the purchase consideration for the acquisition of a new subsidiary company Select one: O a. All four O b. (i) and (ii) only c. (iii) and (iv) only d. (ii) and (iii) only
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Select one:
a.
(iii) and (iv) only
b.
(ii) and (iii) only
c.
(i) and (ii) only
d.
All four

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