View the step-by-step solution to:

The following summarised information is available in relation to 'La Scan', a publicly listed company,I in Australia: Statement of comprehensive...


 * Acquired on the 1st November 2017

 Analyst expect profits from the market sector in which La Scan's existing operations are based to increase by 6% in the year to 30thJune 2019 and by 8% in the sector of its newly acquired operations.

 On 1st July 2016 La Scan had:

 $12 million of $1 ordinary shares in issue.

 $5 million 8% convertible debentures 2023; the terms of conversion are 40 equity shares in exchange for each $100 of debenture.

 On 1 January 2018 the directors of La Scan were granted options to buy 2 million shares in the company for $1 each. The average market price of La Scan's shares for the year ending 30th June 2018 was $2.50 each.

 Assume an income tax rate of 30% for year 2016,2017 and 2018


 (i) Calculate La Scan's estimated profit after tax for the year ending 30 June 2019 assuming the analysts' expectations prove correct;

 (ii) Calculate the diluted earnings per share (EPS) on the continuing operations of La Scan for the year ended 30 June 2018 and the comparatives for 2017.


The following summarised information is available in relation to 'La Scan’, a publicly listed company,I in Australia: Statement of comprehensive income extracts for years ended 30‘“ June: 2013 201 3'
Continuing Discontinued Continuing Discontinued
$'flflfl $'DCID 5’000 $'flflfl
Profit aiter tax from:
Existing operation goon (T5 t1) ‘ITSU eon Newiy acquired operation-55* 45E] nil

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question