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Earnings per share

Basic EPS: Bonus issues

3.1 Weighted average number of shares: Bonus issues

A bonus issue is an issue of shares to existing shareholders based
on their existing shareholding for FREE.

A 1 for 4 bonus issue leads to one new free share for every four
shares currently held.

EPS calculations treat these share issues as if they have always been in existence.

Any share issues BEFORE the bonus issue must be scaled up by the BONUS
FRACTION.

Shares after the bonus issue
Bonus fraction = –––––––––––––––––––––––
Share before the bonus issue

NB. A bonus issue can also be referred to as a SCRIP ISSUE.

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