Question

As at 1 July 2013 Benjamin Ltd had 100 000 fully paid ordinary shares. The company had the following issues and purchases subsequently made during the year:

• 200 000 fully paid ordinary shares issued on 1 September 2013 at the prevailing market price
• 20 000 fully paid ordinary shares purchased back on 1 February 2014 at the prevailing market price
• 50 000 partly paid ordinary shares issued on 1 April 2014 at an issue price of $2.00. The shares were partly paid to $1.50. The partly paid shares carry the right to participate in dividends in proportion to the amount paid as a fraction of the issue price.

The weighted average number of ordinary shares outstanding during the period will be:

Select one:

a. 267,157 shares

b. 287,157 shares

c. 284,084 shares

d. 304,084 shares

Answer 1