Graham Plc Has the Following Information for the Year to 30

question 6

Multiple Choice

Graham plc has the following information for the year to 30 June:
Profit for the year : £4.2 m
Ordinary dividend paid : £1.8 m
Number of ordinary shares : 18 m
Market price at 30 June : £2.90
Calculate the earnings per share for Graham Plc as at 30 June.

• A) 10 pence
• B) £2.33
• C) 13.3 pence
• D) 23.3 pence

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive.

Market Price

The market price is the current price at which an asset or service can be bought or sold in a given market.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Willing to Pay

The maximum price at which a consumer values a good or service enough to purchase it.