Daisy Ltd Has a Net Income After Tax of $2

question 72

Multiple Choice

Daisy Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2013.At the beginning of the period Daisy Ltd has 900 000 fully paid-up ordinary shares on issue.On 1 December 2012 Daisy Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00.On 1 March 2013 Daisy Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings.The last sale price of an ordinary share before the bonus issue was $2.50.At the beginning of the current period Daisy Ltd also had 500 000,$1.00,5% cumulative preference shares on issue.The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2012 was $1.50 per share.What are the earnings per share figure for the period ended 30 June 2013 and what are the comparative earnings per share for the previous year to be reported in the 2013 financial reports according to AASB 133?

• A) current period (2013) $1.58; previous period (2012) $1.29
• B) current period (2013) $1.60; previous period (2012) $1.75
• C) current period (2013) $1.73; previous period (2012) $1.29
• D) current period (2013) $1.75; previous period (2012) $1.75

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Definitions:

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often to increase market share.

Per Se Violation

A violation that is inherently illegal, without need for further examination of its effects or intentions, especially in antitrust law.

Conspiracy

An agreement between two or more parties to commit an unlawful act or to use unlawful means to achieve an otherwise lawful end.

Rule of Reason

A legal doctrine used in antitrust law to determine if a business practice is anticompetitive, considering the practice's purpose, effect, and market context.