A company has an issued share capital of 600,000 ordinary shares, issued at 20 cents per share and 100,000 12% preference shares of issued at $1.00 per share.

Preference shares are paid a dividend of 12 cents per share. Preference share holders are paid their dividend from profits, prior to the payment of any dividends to ordinary shareholders.

If Profit after tax for the period is $420,000, what is the profit attributable to ordinary shareholders, on a per share basis?

Select one:

a.

0.78 cents per share

b.

0.60 cents per share

c.

0.70 cents per share

d.

0.68 cents per share