Page 528 - F2 Integrated Workbook STUDENT 2019

F2: Advanced Financial Reporting

18.3 AD’s EPS figures for the y/e 31st December 20X9 and 20X8 are shown below:
X9 X8
EPS 45.6p 56.3p

Which of the following reasons could be an accurate explanation of the
EPS movement?

A A 1 for 4 scrip issue occurred on 30th June 20X9 and was the only share
issue during the 2 years.

B Dividends paid during 20X9 were significantly larger than those paid in
20X8.

C A restructuring program was announced in May 20X9. Redundancy
payments to those affected were made on 30th September 20X9. No
similar payments were incurred in 20X8.

D A successful launch of a new product saw significant increases in revenue
and gross profit margins.

18.4 Nixon plc revalued its property upwards by $2 million at the start of the year.
The property is expected to have a remaining useful life of 20 years.

Which of the following ratios would be unaffected by the revaluation?

A Current ratio

B Gearing

C Return on capital employed

D Operating profit margin

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