A Company Reports the Following in Relation to the Year $$\text { Number of ordinary shares issued at 1/7/2011 } \quad\quad10000$$

question 25

Multiple Choice

A company reports the following in relation to the year ended 30/6/2012:
$$\text { Number of ordinary shares issued at 1/7/2011 } \quad\quad10000$$
Number of preference shares issued
$$\text { \{paying an annual dividend of } \$ 2.00 \text { pershare\} }\quad\quad800$$
On 31/3/2012 a further 1000 ordinary shares were issued.
$$\text { Net profit from ordinary activities, after income tax } \quad\quad\quad\$ 20000$$
The company's basic earnings per share figure (to the nearest tenth of a cent) is:

• A) $1.95
• B) $1.67
• C) $2.00
• D) $1.79

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The combined quantity of a product or service that consumers are inclined and ready to purchase at an identified price.

Excess Demand

A market condition where the quantity demanded of a product exceeds the quantity supplied at a given price, leading to upward pressure on prices.

Selection Bias

Selection bias occurs when the sample used is not random.