Acer 2005 Annual Report Download - page 21

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- 16 -
The proposed dividend distribution plan, resolved the Company’s Board of Directors,
will be submitted to Shareholders’ Meeting on June 15, 2006 for approval:
The Company proposed to appropriate NT$ 6,763,556,115 from retained earnings for
shareholders’ dividend and bonus as cash dividend. The cash dividend will be
distributed to shareholders listed in the Company’s shareholders’ list on the ex-right day
based on their holdings at NT$ 3 per share.
Another NT$ 450,903,740 from retained earnings will be distributed to shareholders
through issuance of shares. The stock dividend will be distributed to shareholders
listed in the shareholders’ list with their respective holdings at the ratio of 60 shares for
every one thousand shares held.
2.3.7 An Analysis on Impact of the Proposed Stock Dividends Appropriation in Terms of
Operating Results, Earnings Per Share and Rate of Return of Shareholders’
Investment
Year
Description Estimates for 2006
Paid-in capital at the beginning of the term (Expressed in Thousand NT$) 22,545,187
Cash dividend per share (Expressed in Thousand NT$) 3
Stock allocated per share upon capital increase with earning 0.02
Stocks, dividend
allocated in the
year Stock allocated per share upon capital increase with capital
reserve 0
Operating profit (Expressed in Thousand NT$) 8,303,527
Increase (decrease) of operating profit compared with
preceding year 42.27%
Net profit after tax (Expressed in Thousand NT$) 10,018,364
Increase (decrease) of net profit after tax compared with
preceding year 18.18%
Earning per share (EPS) (NT$) 4.3
Increase (decrease) of EPS compared with preceding year 12.27%
Change in
business
performance
Annual average return rate of investment (on grounds of annual
EPS) 7.04%
Presumed EPS 4.44If earnings converted to
capital increase being totally
allocated as cash dividend
Presumed annual average return
rate of investment 7.28%
Presumed EPS 4.30
If capital reserve was not
converted to capital increase Presumed annual average return
rate of investment 7.04%
Presumed EPS 4.44
Presumed EPS
and EPS ratio
If capital and earning
converted to capital being
allocated in cash dividend
Presumed annual average return
rate of investment 7.28%
1.If earning converted to capital increase being totally allocated as cash dividend, the presumed EPS
= [Net profit after tax – Interest expense to be borne for presumed cash dividend* Η X (1 – Tax rate)] / [Total number of shares
allocated at end of the year – Number of shares allocated out of earning**]
The interest expense to be borne for presumed cash dividend = Amount of profit converted for capital increase Η General loan
interest rate of 1-year term*
Number of shares allocated out of earning: The total number of shares increased stock dividend allocated in the preceding
year.
2.Annual average EPS ratio: Annual average stock price/EPS as shown through the annual financial statements.