Gaillac SA has 1,200,000 units ordinary shares before a rights issue whose rights are exercised on 1 April: 600,000 units new shares are issued on that date. The adjustment factor for the bonus element, calculated as the price before the rights are detached divided by the theoretical ex-rights value, is 1.2 units. The number of shares before the exercise is multiplied by this factor and counts 3 months; all the shares after the exercise count 9 months (weighting in months, case convention). The profit attributable to ordinary equity holders for the year is 3,420,000 (in euros). Calculate the weighted average number of shares for the year and then basic earnings per share. Round earnings per share to two decimals (case convention).
- Shares before the exercise of the rights
- 1,200,000
- Adjustment factor for the bonus element
- 1.2
- New shares issued on 1 April
- 600,000
- Months before the exercise of the rights
- 3
- Months after the exercise of the rights
- 9
- Profit attributable to ordinary equity holders
- 3,420,000