Fitzroy Ltd Has the Following Potential Ordinary Shares on Issue

question 42

Multiple Choice

Fitzroy Ltd has the following potential ordinary shares on issue as at 30 June 2009: $$\begin{array} { | l | l | l | l | } \hline & \begin{array} { l } \text { Executive options } \\\text { issued 1 July 2006 }\end{array} & \begin{array} { l } \text { Employees options } \\\text { issued 1 July 2007 }\end{array} & \begin{array} { l } \text { Employees options } \\\text { issued 1 July 2008 }\end{array} \\\hline \text { No. of options } & 100000 & 200000 & 150000 \\\hline \text { Exercise price } & \$ 2.80 & \$ 3.10 & \$ 3.30 \\\hline \text { Expiry date } & 30 \text { June 2010 } & 30 \text { June 2012 } & \text { 30 June 2013 } \\\hline\end{array}$$ The closing price for Fitzroy Ltd shares on 30 June 2009 was $3.35 and the average share price for the period was $3.20.
Which of following statements is correct with respect to the determination of a dilutive security that is in accordance with AASB 133 Earnings per Share?

• A) Executive options (issued on 1 July 2006) and employee options (issued on 1 July 2007) are both dilutive.
• B) Executive options (issued on 1 July 2006) and employee options (issued on 1 July 2008) are both dilutive.
• C) Employee options (issued on 1 July 2007) and employee options (issued on 1 July 2008) are both dilutive.
• D) All the potential ordinary shares are dilutive.

---

Definitions:

Positive And Negative

Refers to the presence or absence of certain stimuli, traits, or conditions, often used in the context of psychology and social sciences to describe opposite types of emotions, reactions, or charges.

Sundays

The day of the week traditionally observed as a day of rest and worship in Christianity, occurring between Saturday and Monday.

Scientific Finding

Outcomes or conclusions derived from systematically conducted research experiments or observations.

Psychological Researchers

Scientists who conduct studies and experiments to understand human behavior and mental processes.