The capital structures of two companies are as follows: Details as at 28 February 2014, the accounting date: Source of capital Hluli Limited Ndaba Limited ww w Long-term debt R767 500 at a coupon interest R400 000 at a coupon interest rate of 14% p.a. annum rate of 11% p.a. annum Preference shares issued 60 000 5% preference shares 38 000 5% preference shares of R 4.90 each of R 8 each Ordinary shares issued 42 000 shares 56 000 shares Q.1.1 Calculate the Earnings Per Share (EPS) for each company individually if Earnings Before Interest and Tax (EBIT) for the year ended 28 February 2014 were estimated as follows: Hluli Limited: R 625 050 Ndaba Limited: R 787 500 Note: Assume a tax rate of 28%

The capital structures of two companies are as follows: Details as at 28 February 2014, the accounting date: Source of capital Hluli Limited Ndaba Limited ww w Long-term debt R767 500 at a coupon interest R400 000 at a coupon interest rate of 14% p.a. annum rate of 11% p.a. annum Preference shares issued 60 000 5% preference shares 38 000 5% preference shares of R 4.90 each of R 8 each Ordinary shares issued 42 000 shares 56 000 shares Q.1.1 Calculate the Earnings Per Share (EPS) for each company individually if Earnings Before Interest and Tax (EBIT) for the year ended 28 February 2014 were estimated as follows: Hluli Limited: R 625 050 Ndaba Limited: R 787 500 Note: Assume a tax rate of 28%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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