Gimlet Ltd has earnings after tax of $930 000 for the year ended 30 June 2015.At the beginning of the period Gimlet had 250 000 fully paid-up ordinary shares on issue.On 30 December 2014 the company made a one-for-six bonus issue.The last sale price of the shares immediately prior to the bonus issue was $1.35 each.What are the earnings per share taking into account the bonus issue?

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To calculate the earnings per share (EPS) after the bonus issue, we need to adjust the number of shares. Initially, there were 250,000 shares. With a one-for-six bonus issue, the number of shares increases by 250,000 / 6 = 41,667 shares. The total number of shares after the bonus issue is 250,000 + 41,667 = 291,667 shares. The EPS is calculated as earnings after tax divided by the total number of shares: $930,000 / 291,667 = $3.19.

Gimlet Ltd Has Earnings After Tax of $930 000 for the Year