Entity A has 200,000 ordinary shares outstanding on January 1, 20x1. Entity A offers rights issue to its existing shareholders that enable them to acquire 1 ordinary share at a subscription price of P120 for every 5 rights held. The rights are exercised on May 1, 20x1. The market price of one ordinary share immediately before exercise is P180. Entity A reported profit after tax of P2,700,000 in 20x1. What is the basic earnings per share in 20x1? * O 12.58 O 12.67 O 11.71 O 11.67
Entity A has 200,000 ordinary shares outstanding on January 1, 20x1. Entity A offers rights issue to its existing shareholders that enable them to acquire 1 ordinary share at a subscription price of P120 for every 5 rights held. The rights are exercised on May 1, 20x1. The market price of one ordinary share immediately before exercise is P180. Entity A reported profit after tax of P2,700,000 in 20x1. What is the basic earnings per share in 20x1? * O 12.58 O 12.67 O 11.71 O 11.67
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 12P
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