ABC Ltd's Basic Earnings Per Share Is $1

question 21

Multiple Choice

ABC Ltd's basic earnings per share is $1.25 for the year ended 2012. The company has the following outstanding potential ordinary shares at the start of the year with the following information:

Average share price for ABC Ltd during the year is $1.80.
Which of the above potential ordinary shares is the most dilutive and least dilutive POS in accordance with AASB 133 "Earnings per Share", respectively?

• A) Convertible notes, employee options;
• B) Executive options, convertible notes;
• C) Employee options, convertible notes;
• D) Preference shares, executive options;
• E) Executive options, preference shares.

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