Craven Ltd Has 10,000,000 Ordinary Shares on Issue at the Beginning

question 2

Multiple Choice

Craven Ltd has 10,000,000 ordinary shares on issue at the beginning of the year,1 July 2003.These shares were issued at $0.50 each and have a current market value of $3.00.On 1 November 2003,Craven Ltd bought back 1,000,000 ordinary shares originally issued at $0.50 for $1.90 each.On 1 February 2004,1,500,000 shares were issued fully paid up at the current market value of these shares.Also during the period,500,000 partly paid-up ordinary shares were issued.They were issued on 1 April 2004 at an issue price of $2.90.These shares were partly paid to $1.80.The partly paid shares are permitted proportionate rights to vote and receive dividends based on the relationship between the amount paid up and the issue price. Craven Ltd has 3,000,000,$1.00 preference shares that provide cumulative dividends at a rate of 8 per cent.
For the year ended 30 June 2004,the net income after tax was $20,000,000.
What are the basic earnings per share for Craven Ltd for the year ended 30 June 2007?

• A) $1.99
• B) $2.00
• C) $1.96
• D) $1.53
• E) None of the given answers.

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Definitions:

Cognitive Capacities

The mental abilities or faculties related to the processing of information, perception, reasoning, and memory.

Piaget

A Swiss psychologist renowned for his groundbreaking work in child development, specifically his theory of cognitive development that outlines how children progress through four stages of mental development.

Infant Intelligence

Refers to the cognitive capabilities of infants, including their ability to learn, understand, and interact with their environment, often assessed through developmental milestones.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.