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Chapter 5

Example 5.4

At 1 May 20X3, Dustin had 600 million $1 ordinary shares in issue. It made a
rights issue of 1 new ordinary share for every 5 held at $3.50 on 1 September
20X3. Its profit before tax for the year was $600m and the income tax expense
for the year was $150m.

The share price immediately before the rights issue was $4.00.

Dustin’s EPS for the year ended 30 April 20X3 was 45c.

Required:

Calculate the basic EPS for the year ended 30 April 20X4. Give your
answer in cents.

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