Use the Following Information to Answer Questions

question 10

Multiple Choice

Use the following information to answer questions
Harry Ltd determined its profit attributable to ordinary shareholders for the reporting period ended 30 June 2016 as €960 000. The average market price of the entity's shares during the period is €4.00 per share. The weighted average number of ordinary shares on issue during the period is 1 000 000. The weighted average number of shares under share options arrangements during the year is 200 000 and the exercise price of shares under option is €3.50.
-The diluted earnings per share at 30 June 2016 is:

• A) €0.80
• B) €0.94
• C) €1.24
• D) €4.00

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Definitions:

Market Portfolio

A theoretical bundle of investments that includes all available assets in the market, used as a benchmark to evaluate the performance of individual investments.

Risk-Free Interest

The return on an investment with no risk of financial loss, typically represented by the yield on government securities such as Treasury bills.

Expected Return

The predicted profit or loss from an investment, considering both the likelihood and the impact of various outcomes.

Variance

A measure of the spread between numbers in a data set, showing how far each number in the set is from the mean and thus from every other number in the set.