Reference no: EM132664789

Question - For the year ending 30 June 2019, Granite Ltd reports the following:

Net profit after tax of $1.2 million.

Granite Ltd commenced the year with 400 000 fully paid ordinary shares. During the year the company:

Issued 80 000 fully paid ordinary shares on 1 November 2018 at the prevailing market price

Purchased back 50 000 fully paid ordinary shares on 1 March 2019 at the prevailing market price

Issued 100 000 partly ordinary shares on 1 June 2019 at an issue price of $2.00. The shares were partly paid to $1.00. The partly paid shares carry the right to participate in dividends in proportion to the amount paid as a fraction of the issue price.

For the entire financial year Granite Ltd had 500 000 $1.00 preference shares, which provide dividends at a rate of 10 per cent per year. The dividend rights are cumulative. The preference share dividends were not treated as part of interest expense.

REQUIRED - Compute the basic earnings per share for Granite Ltd for 2019.