Craven Ltd Has 10,000,000 Ordinary Shares on Issue at the Beginning

question 2

Multiple Choice

Craven Ltd has 10,000,000 ordinary shares on issue at the beginning of the year,1 July 2003.These shares were issued at $0.50 each and have a current market value of $3.00.On 1 November 2003,Craven Ltd bought back 1,000,000 ordinary shares originally issued at $0.50 for $1.90 each.On 1 February 2004,1,500,000 shares were issued fully paid up at the current market value of these shares.Also during the period,500,000 partly paid-up ordinary shares were issued.They were issued on 1 April 2004 at an issue price of $2.90.These shares were partly paid to $1.80.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. Craven Ltd has 3,000,000,$1.00 preference shares that provide cumulative dividends at a rate of 8 per cent.
For the year ended 30 June 2004,the net income after tax was $20,000,000.
What are the basic earnings per share for Craven Ltd for the year ended 30 June 2007?

• A) $1.99
• B) $2.00
• C) $1.96
• D) $1.53
• E) None of the given answers.

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Definitions:

Group Treatment

A form of therapeutic intervention where therapy is conducted with groups of individuals rather than in a one-on-one setting.

Individual Therapy

A form of psychotherapy where treatment is provided on a one-on-one basis, focusing on the individual's specific issues and needs.

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A statistical method that merges the findings of several research studies to reach a conclusion with more statistical strength than any single study.

ACT

Acceptance and Commitment Therapy is a type of psychotherapy that promotes the acceptance of one's thoughts and emotions instead of resisting them or experiencing guilt.