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a) The following information are related to XYZ Ltd: Year ended 31.12.2022 31.12.2021 Net profit...

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Accounting

a) The following information are related to XYZ Ltd: Year ended 31.12.2022 31.12.2021 Net profit attributable to ordinary shareholders ($ '000) 25,000 30,000 No of ordinary shares at 31 December 75,000,000 60,000,000 A rights issue was issued on 30 June 2022 on a basis of 1 for every 4 at $2.40. The average of the closing prices of the last seven days of quotation cum-rights price (market price) was $3.00. All the rights issue was taken up. Required: i) Calculate the theoretical ex-rights price (TERP) and determine the bonus (element) amount of the rights issue. ii) Calculate the weighted average number of shares and compute the Basic Earnings Per Share (EPS) as per NZ IAS 33 for both years for XYZ Ltd (this includes the restated EPS of 2021 in 2022). (10 marks)

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