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Fitzgerald Ltd had the following capital structure on 1 July 2019:
Number of ordinary shares 5 000 000
Number of 10% preference shares 100 000
During the year ended 30 June 2020, the company made net profit after tax of $400 000. Preference share dividends of $10 000 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
Question 1: Make the basic earnings per share of Fitzgerald Ltd for the year ending 30 June 2020.
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