What is the diluted earnings per share for the year ended 31 October 20X7?

As at 31 October 20X7 TU’s financial statements show the entity having profit after tax of $600,000 and 900,000 $1 ordinary shares in issue. There have been no issues of shares during the year. At 31 October 20X7 TU have 300,000 share options in issue, which allow the holders to purchase ordinary shares at $2 a share in 3 years’ time. The average price of the ordinary shares throughout the year was $5 a share.

What is the diluted earnings per share for the year ended 31 October 20X7?
A . 66.7 cents
B . 58.8 cents
C . 50.0 cents
D . 55.6 cents

View Answer

Answer: D