BI Plc Has 7 000 000 Ordinary Shares on Issue

BI Plc has 7 000 000 ordinary shares on issue at the beginning of the year,1 July 2014.These shares were issued at €4.50 each and have a current market value of €8.00.On 1 September 2014,BI Plc bought back 500 000 ordinary shares originally issued at €4.50 for €6.50 each.On 1 December 2014,1 000 000 shares were issued fully paid up at the current market value of these shares.Also during the period,800 000 partly paid-up ordinary shares were issued.They were issued on 1 February 2015 at an issue price of €7.20.These shares were partly paid to €4.50.The partly paid shares are permitted proportionate rights to vote and receive dividends based on the relationship between the amount paid up and the issue price. BI Plc has 1 000 000,€1.00 preference shares that provide non-cumulative dividends at a rate of 10%.The dividends were not paid this period.
For the year ended 30 June 2014,the net loss after tax was €1 000 000.
What are the basic earnings per share for BI Plc for the year ended 30 June 2015?

A) none required because the company made a loss
B) ($0.15)
C) $0.20
D) ($0.14)

Correct Answer:

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