At 1 January, Tarnos SA has 5,000,000 units ordinary shares outstanding. On 1 February it issues 480,000 units shares on the conversion of a debt: these shares are outstanding 11 months. On 1 July it issues 360,000 units shares in place of a reinvested dividend: 6 months. On 1 December it buys back 600,000 units shares, withdrawn for 1 month. The dates used are those of each issue, according to its terms (case convention), with weighting in months. The profit attributable to ordinary equity holders is 8,355,000 (in euros). Calculate the weighted average number of shares and then basic earnings per share. Round earnings per share to two decimals (case convention).
- Ordinary shares at 1 January
- 5,000,000
- Shares issued on conversion of the debt
- 480,000
- Months outstanding (conversion)
- 11
- Shares issued in place of a dividend
- 360,000
- Months outstanding (reinvested dividend)
- 6
- Shares bought back
- 600,000
- Months elapsed since the buy-back
- 1
- Profit attributable to ordinary equity holders
- 8,355,000