A company’s issued share capital is £2 million, comprising four million ordinary shares of 25p each and one million 8% preference shares of £1. An extract from the company’s statement of comprehensive income for the year to 31 March 2018 is as follows:
£000
Profit before tax……………. 485
Taxation…………………………. 95
——
Profit after tax………………..390
——
Preference dividends of £80,000 were paid during the year.
Required:
(a) Calculate basic EPS for the year.
(b) Recalculate basic EPS for the year on the assumption that the company’s profit after tax includes profit of £50,000 from a discontinued operation.
