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Cavendish Plc Has 2 000 000 Ordinary Shares on Issue

question 35

Multiple Choice

Cavendish Plc has 2 000 000 ordinary shares on issue at the beginning of the year,1 July 2014.These shares were issued at €2.00 each and at the end of the period have a current market value of €4.50.On 1 August 2014,Cavendish Plc bought back 300 000 ordinary shares originally issued at €2.50 for €3.00 each.On 1 November 2014,800 000 shares were issued fully paid up at the current market value of these shares.On 1 March 2015,300 000 partly paid-up ordinary shares were issued at an issue price of €3.50.These shares were partly paid to €2.00.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. For the year ended 30 June 2015,the net income after tax was €1 050 000.
What are the basic earnings per share for Cavendish Plc for the year ended 30 June 2015?

Definitions:

Tax Law

Legislation and regulations governing how taxes are assessed, collected, and managed by governmental authorities.

Deductibility

The eligibility of an expense to be subtracted from gross income to reduce taxable income.

Pension Plans

Financial arrangements designed to provide individuals with an income during retirement, funded by either the employer, the employee, or both.

Income Tax Purposes

The specific calculations and methods used to determine taxable income and tax liabilities according to the regulations set by tax authorities.