On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 2014, but on that date there were outstanding share options to purchase 2 million equity shares at R1-20 each. The average market value of Hoy's equity shares during the year ended 30 September 2014 was R3 per share. Hoy's profit after tax for the year ended 30 September 2014 was R1 550 000. In accordance with IAS 33 Earnings per Share, what is Hoy's diluted earnings per share for the year ended 30 September 2014? Select one: O a. 25-0 cents O b. 41-9 cents O c. 31.0 cents O d. 22.1 cents

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 2014, but on that date there
were outstanding share options to purchase 2 million equity shares at R1.20 each. The average market value of Hoy's equity shares during the year ended 30 September 2014 was
R3 per share. Hoy's profit after tax for the year ended 30 September 2014 was R1 550 000. In accordance with IAS 33 Earnings per Share, what is Hoy's diluted earnings per share
for the year ended 30 September 2014?
Select one:
O a. 25.0 cents
O b. 41.9 cents
O c. 31.0 cents
O d. 22.1 cents
Transcribed Image Text:On 1 October 2013, Hoy had R2-5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 2014, but on that date there were outstanding share options to purchase 2 million equity shares at R1.20 each. The average market value of Hoy's equity shares during the year ended 30 September 2014 was R3 per share. Hoy's profit after tax for the year ended 30 September 2014 was R1 550 000. In accordance with IAS 33 Earnings per Share, what is Hoy's diluted earnings per share for the year ended 30 September 2014? Select one: O a. 25.0 cents O b. 41.9 cents O c. 31.0 cents O d. 22.1 cents
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