Dormant Ltd Has a Net Income After Tax of $2

question 12

Multiple Choice

Dormant Ltd has a net income after tax of $2 540 000 for the year ended 30 June 2015.At the beginning of the period Dormant Ltd had 3 000 000 fully paid-up ordinary shares on issue.On 1 November 2014,Dormant Ltd makes a rights issue of 1 fully paid share for every 6 shares held.The required payment for the rights issue shares was $2.00.The last cum rights price was $3.00.What are the basic earnings per share for the period ended 30 June 2015 in accordance with AASB 133?

• A) $0.73
• B) $0.75
• C) $0.76
• D) $0.78

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Definitions:

Capitalism

An economic system based on private ownership of the means of production and their operation for profit, characterized by a free market and open competition.

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The process by which an innovation is communicated through certain channels over time among the participants in a social system.