* 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.
Recently Asked Questions
- You will borrow $25,000 to buy a car. If your interest rate is 5% on a 4-year loan, what is your monthly payment?
- Bacillus thuringienesis bacteria produce a toxin that harms insects. The bacteria used to be grown in culture and sprayed on crops as an insecticide. How has
- Suppose you were provided with an actively dividing culture of the bacterium E . Coli , to which radioactive thymine had been added , what would happen if a