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Question - Mark Ltd had the following capital structure on 1 July 2019:
Number of ordinary shares 4 000000
Number of 10% preference shares 400 000
During the year ended 30 June 2020, the company made net profit after tax of $450 000. Preference share dividends of $40 000 were paid during the year. The preference dividends were not treated as part of interest expense. No further shares were issued during the year ending 30 June 2020.
Required - Calculate the basic earnings per share of Mark Ltd for the year ending 30 June 2020.
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