Cima F2 Exam Question No 56

Question No 56:

The total number of shares issued on the exercise of the option or warrant is split into two?

• The number of shares that would have been issued if the cash received had been used to buy shares at fair value (using the average price of the shares during the period);
• The remainder, which are treated like a bonus issue (i.e. as having been issued for no consideration).

The number of shares issued for no consideration is added to the weighted average number of shares when calculating the DEPS.