BI Ltd Has 7 000 000 Ordinary Shares on Issue

question 51

Multiple Choice

BI Ltd has 7 000 000 ordinary shares on issue at the beginning of the year,1 July 2014.These shares were issued at $4.50 each and have a current market value of $8.00.On 1 September 2014,BI Ltd bought back 500 000 ordinary shares originally issued at $4.50 for $6.50 each.On 1 December 2014,1 000 000 shares were issued fully paid up at the current market value of these shares.Also during the period,800 000 partly paid-up ordinary shares were issued.They were issued on 1 February 2015 at an issue price of $7.20.These shares were partly paid to $4.50.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. BI Ltd has 1 000 000,$1.00 preference shares that provide non-cumulative dividends at a rate of 10%.The dividends were not paid this period.
For the year ended 30 June 2014,the net loss after tax was $1 000 000.
What are the basic earnings per share for BI Ltd for the year ended 30 June 2015?

• A) none required because the company made a loss
• B) ($0.15)
• C) $0.20
• D) ($0.14)

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Definitions:

Connecting Term

A word or phrase that joins sentences, phrases, or concepts together in a logical or meaningful way.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping.

Sears

An American chain of department stores founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century, historically significant for its mail-order catalogs.

Predicate

An element of a sentence or clause where a verb is present and it communicates information about the subject.