Ravenel SA has cumulative preference shares, classified as equity, with a nominal amount of 4,000,000 and a 6% rate. The dividend due for the year is 240,000; the board decided not to declare it this year. The profit attributable to the parent before preference dividends is 1,640,000 (in euros) and the weighted average number of ordinary shares is 1,000,000 units. Calculate the profit attributable to ordinary equity holders and then basic earnings per share. Round earnings per share to two decimals (case convention).
- Profit attributable to the parent before preference dividends
- 1,640,000
- Cumulative preference dividend due for the year
- 240,000
- Weighted average number of ordinary shares
- 1,000,000