Benjy Ltd Has 8,000,000 Ordinary Shares on Issue at the Beginning

question 22

Multiple Choice

Benjy Ltd has 8,000,000 ordinary shares on issue at the beginning of the year,1 July 2005.These shares were issued at $1.00 each and have a current market value at the end of the period of $5.20.On 1 September 2005,Benjy Ltd bought back 1,000,000 ordinary shares originally issued at $1.50 for $4.00 each.On 1 February 2006,2,000,000 shares were issued at the current market value of these shares.On 1 March 2006,900,000 partly paid-up ordinary shares were issued at an issue price of $5.00.These shares were partly paid to $4.00.Shares are not granted proportionate rights to receive dividends.This right attaches only when the shares are fully paid.The shares,however,do provide a proportionate right to vote at annual general meetings.What is the weighted average number of shares calculated in accordance with AASB 133?

• A) 8,232,438
• B) 8,083,333
• C) 7,991,781
• D) 8,803,333
• E) None of the given answers.

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