Fitzroy Ltd Has the Following Potential Ordinary Shares on Issue

question 30

Multiple Choice

Fitzroy Ltd has the following potential ordinary shares on issue as at 30 June 2009:

The closing price for Fitzroy Ltd shares on 30 June 2009 was $3.35 and the average share price for the period was $3.20.
Which of following statements is correct with respect to the determination of a dilutive security that is in accordance with AASB 133 "Earnings per Share"?

• A) Executive options (issued on 1 July 2006) and employee options (issued on 1 July 2007) are both dilutive.
• B) Executive options (issued on 1 July 2006) and employee options (issued on 1 July 2008) are both dilutive.
• C) Employee options (issued on 1 July 2007) and employee options (issued on 1 July 2008) are both dilutive.
• D) All the above potential ordinary shares are dilutive.
• E) None of the given answers potential ordinary shares are dilutive

---

Definitions:

Kahneman and Tversky

Two psychologists known for their work on the psychology of judgment and decision-making, as well as behavioral economics.

Sure Thing

A situation or outcome that is guaranteed or certain.

Risky Gamble

Making a decision that involves a high risk of loss or failure, typically in hope of achieving significant reward or gain.

Anticipatory Semantic Slanting

The deliberate use of language to shape and influence perceptions or expectations of future events.