Awake Ltd Has a Net Income After Tax of $5,620,000

question 40

Multiple Choice

Awake Ltd has a net income after tax of $5,620,000 for the year ended 30 June 2006.At the beginning of the period Awake Ltd has 1,000,000 fully paid-up ordinary shares on issue.On 1 February 2006 Awake Ltd makes a rights issue of 1 fully paid share for every 4 shares held.The required payment for the rights issue shares was $3.00.The last cum rights price was $3.80.Awake Ltd also has 2,000,000,$1.00,cumulative,7 per cent preference shares on issue for the whole period.The dividends on the preference shares are not treated as expenses in the income statement. What are the basic earnings per share for the period ended 30 June 2005 in accordance with AASB 133?

• A) $4.39
• B) $4.61
• C) $4.97
• D) $5.22
• E) None of the given answers.