Economics · Accounting - Diluted Earnings Per Share (IAS 33)
Fogarty Co had a weighted average number of 5,000,000 ordinary shares in issue during the year ended 31 December 20X7. On 1 January 20X7, the company issued 50,000 share options. Each option gives the holder the right to purchase one $1 ordinary share at an exercise price of $2.80 per share. Additional details: - The options are exercisable between 1 January 20X9 and 31 December 20Y0. - The average market price of each $1 ordinary share during the year ended 31 December 20X7 was $3.50. Calculate the weighted average number of shares to be used in the calculation of diluted earnings per share (EPS) for the year ended 31 December 20X7.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 15.40 million
- 25.10 million
- 35.01 million✓
- 44.90 million
Correct answer
5.01 million
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