For the year ended 31 December 2019, Manjinder plc has a profit after tax of £5.0m. Issued share capital of £4.0m is made up of 4 million 50 pence preference shares which carry a dividend rate of 6% and ordinary share capital of £2.0m made up of shares with a par value of 10 pence each. What are Manjinder plc's earnings per share for the year ended 31 December 2019?

Question

Quizplus · Accepted Answer

Earnings per share = (Profit after tax - Preference dividend) / Number of ordinary shares= (5,000,000 - (4,000,000 * 0.06)) / (2,000,000 * 10)= (5,000,000 - 240,000) / 20,000,000= 4,760,000 / 20,000,000= 0.238= 23.80 pence

For the Year Ended 31 December 2019, Manjinder Plc Has