Jan 1 2008, no of share - 700 000
Oct 1, 2008 no of share - 900,000 (200,000 new issued)
Dec 1 2009 bonus issue of 100,000 ordinary share

Weighted average share: 750,000 shares

So if bonus issue, you'd need to restate the EPS for previous year. So when calculating the EPS for the previous year, how to calculate?

Is it:

A) Previous year EPS x 750,000/1,000,000

B) Previous year EPS x 900,000/1,000,000

Also, when calculating profit for the year after tax and dividend, the amount of preference dividend paid is RM 20,000 (shown in statement of changes in equity). I was wondering if I need to re-gross it or just take the RM 20,000.

Thanks for your time.

EPS for 2008 should be:

= Net Earnings in 2008 X [(700,000 X 9/12) + (900,000 X 3/12)]

In calculating EPS, you need to deduct the RM20,000 (if deducted then just ignore it, sometimes question just wants to confuse you). It is because EPS refers to earnings to ordinary shareholders, thus you need to use the final earnings that are available to them.