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27/08/2024

Earnings Per share AFR May 2019 Q4 B
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AFR May 2019 Q4 b

(b) Tewa Ltd. has provided the following extracts from its income statements for the years ended 31 December 2017 and 31 December 2018:

Details 2017 2018
Sh.”million” Sh.”million”
Profit before tax (accrues evenly) 950 1,550
Income tax expense (500) (900)
Profit after tax 450 650
Capital structure includes:
Ordinary shares of Sh.100 each 2,000 3,300
8% Redeemable preference shares of Sh.100 each 1,000 1,000
10% Convertible preference shares of Sh.100 each 500 500
10% Convertible loan stock 1,500 1,200
Additional information:

1. Part of the increase in the share capital (ordinary) was due to a rights issue that was made on 1 April 2018. A shareholder was granted the right to buy 1 new ordinary share for every 5 ordinary shares held at a price of Sh.120 per share. The market price of the ordinary shares before the rights issue was Sh.125 per share.

2. The convertible loan stock was issued on 1 July 2017. Each Sh.1,000 loan stock is convertible to 25 ordinary shares. Holders of Sh.300 million worth of convertible loan stock exercised their rights on 1 January 2018.

3. The convertible preference shares were issued in the year 2015. One convertible preference share is entitled to one new ordinary share.

4. Meanwhile, on 1 April 2018, the company granted its employees the option to buy 4 million ordinary shares at a strike price of Sh.120 per share. No employee had exercised their right by 31 December 2018. The average market price of the ordinary shares during the year 2018 was Sh.125 per share.

5. The corporation tax rate is 30%.

Required:

The basic earnings per share (EPS) for the years 2017 and 2018. (6 marks)
The diluted EPS for the years 2017 and 2018. (8 marks)
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AFR May 2019 Q4 b

23/08/2024

The Pages of Our Hearts

In the heart of New England, where autumn painted the world in hues of gold and crimson, there was a quaint bookstore called "Whispering Pages." Its wooden shelves were filled with stories that had been read and loved, and its creaky floors echoed with the soft footfalls of its patrons. It was a haven for those who found solace between the pages of a book—and, as Emily Turner often mused, a place where unexpected love could blossom amid the pages and whispers of shared dreams.

Emily had been working at Whispering Pages for almost a year. Her days were filled with the scent of aged paper and the gentle hum of classical music. She loved her job—loved the way the stories seemed to come alive in the cozy little shop. But more than that, she loved the quiet solitude it afforded her, especially in the crisp autumn air. Little did she know, her world was about to be forever changed by a chance encounter that would write a new, beautiful chapter into her life.

In the heart of New England, where autumn painted the world in hues of gold and crimson, there was a quaint bookstore called "Whispering Pages." Its wooden

22/08/2024

Ensuring Excellence Through Due Diligence

In today’s fast-paced and ever-evolving business landscape, the value of a team member extends beyond merely fulfilling their job duties. To be an invaluable asset to a company, one must not only perform their responsibilities with excellence but also contribute in ways that drive the organization forward. This involves a multifaceted approach that includes maximizing impact within a set timeframe, ensuring thoroughness and reliability in every task, and striving to leave a lasting positive change. Key aspects such as proactive problem-solving, effective communication, adaptability, knowledge sharing, and relationship-building are critical to enhancing both individual and collective performance. By embodying these qualities, you can significantly contribute to the company’s success and growth, demonstrating your value as a key player in achieving its goals.

To be an invaluable asset to a company, several key factors contribute to your value:

1. Commitment to Impact: Understanding that your role is temporary or project-based drives you to make a significant impact during your tenure. This sense of urgency ensures that you focus on delivering high-quality work and achieving results efficiently.

2. Dedication to Due Diligence: Demonstrating thoroughness in your responsibilities and decision-making shows that you are dependable and meticulous. By ensuring due diligence, you contribute to the company’s reliability and reputation.

3. Improving the Organization: Striving to leave the place better than you found it reflects a commitment to continuous improvement. This might involve streamlining processes, enhancing team morale, or implementing best practices that benefit the company long-term.

4. Proactive Problem-Solving: Anticipating potential issues and addressing them before they escalate can save the company time and resources. This proactive approach demonstrates foresight and initiative.

4. Effective Communication: Maintaining clear, open communication with colleagues and stakeholders helps to foster collaboration and ensures that everyone is aligned with the company’s goals and expectations.

5. Adaptability: Being flexible and willing to adjust to new challenges or changes in direction shows that you can thrive in dynamic environments and contribute positively to various aspects of the business.

In today’s fast-paced and ever-evolving business landscape, the value of a team member extends beyond merely fulfilling their job duties. To be an invaluable

18/08/2024

Elevate Your Financial Future with Donwicks Account & Tax Consultants Limited
At Donwicks Account & Tax Consultants Limited, we specialize in crafting tailored financial solutions for businesses of all sizes. Our key services include:
• Comprehensive Accounting: Accurate bookkeeping, financial statements, and management reports.
• Strategic Tax Planning: Expert advice on tax strategies, compliance, and optimization.
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16/08/2024

The Uncharted Path
The quaint house on Willow Lane had always been a sanctuary for Emma and Tom. The walls, adorned with photographs and mementos, told the story of their lives together—a narrative of shared dreams and whispered secrets. But on this particular evening, the house seemed unusually silent, weighed down by an air of unease.
Emma stood in the kitchen, staring at the half-empty coffee cup on the table, her fingers tracing the rim as if it held the answers she sought. Her mind replayed the argument from earlier that day, a confrontation that had shattered the calm routine they once relied upon.
Tom had always been the pragmatic one, grounding their lives with his steady approach. He was the planner, the one who liked things to be predictable and orderly. Emma, on the other hand, thrived on spontaneity and creativity. Their differences had been a source of tension but also a source of balance. Until now.
“You’re always so rigid!” Emma had shouted, her voice trembling with frustration. “I need to breathe, Tom. I need to follow my own path.”
Tom’s face had been a mask of hurt and resignation. “I’m not trying to stifle you, Emma. I just want us to be together in this. I thought we were a team.”
When she refused to back down, Tom had made a decision that left Emma stunned and disoriented. He’d packed a few essentials, leaving a note that simply read: “I need to be alone for a while. I hope you find what you’re looking for.”

The quaint house on Willow Lane had always been a sanctuary for Emma and Tom. The walls, adorned with photographs and mementos, told the story of their lives

14/08/2024

One Happy Heart
Once upon a time, in a cozy little house on Maple Street, there was a two-year-old named Charlie. Charlie had big brown eyes and a mop of curly hair that bounced as he toddled around. His days were filled with the joy of discovery and the comfort of routine.
Charlie’s mother, Sarah, had been away for two months on a work assignment. She was a marine biologist, traveling to a research station far from home. The family had prepared Charlie for the absence in their own way—little explanations that were more about routines than reality.
Charlie’s father, David, was a patient and loving man. He juggled his job, chores, and caring for Charlie with a calm and gentle demeanor. His days revolved around making sure Charlie had everything he needed and that their home remained a haven of warmth and laughter.
One sunny afternoon, David and Charlie were in the backyard. David was pushing Charlie on a swing, making sure to give him extra high pushes that made the little boy squeal with delight. The garden was their kingdom, filled with flowers, a small sandbox, and a tiny wooden playhouse.
“Higher, Daddy! Higher!” Charlie’s giggles filled the air.
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13/08/2024

Fractured Trust
Emma's hands trembled as she wiped down the kitchen counter. The once pristine surface was now marred by streaks of cleaning solution, and despite her efforts, it felt impossible to make it look perfect. She glanced at the clock on the wall—8:15 a.m. The workday would soon begin, and she needed to leave for the office, but her mind was already consumed by the swirling thoughts that had become a constant companion in recent months.
Her husband, Daniel, was still in bed. He had always been a deep sleeper, but lately, Emma's thoughts had been keeping her awake long into the night. The nagging sense of distrust had started as a small, almost imperceptible doubt, but it had grown over time into a full-blown storm.
It had begun innocently enough. Daniel had been working late, and while she understood the demands of his job, Emma couldn't shake the unease she felt. There were little things—text messages he wouldn’t show her, phone calls he took in private, and the new, secretive way he would check his phone.

Emma's hands trembled as she wiped down the kitchen counter. The once pristine surface was now marred by streaks of cleaning solution, and despite her