Question 3 The following details have been extracted from the accounts of Togg Limited for the year ended 31 December Year 2. $'000 Profit before taxation 5,245 Taxation (2,280) Profit after taxation 2,965 Preference dividend paid (100) Ordinary dividend paid (1,600) 1,265 Paid up capital has been as follows: 31 December Year 1 1 January Year 2 Ordinary shares - 2 million of 25 cents each 10% Preference shares - 1 million of $1 each Bonus issue of 1 ordinary share for every 2 ordinary shares held 1 October Year 2 Rights issue made to ordinary shares. Terms are one for four already held at a price of 40 cents. The market price just before the rights issue was 50 cents. The issue was fully taken up. 1 December Year 2 Issue 400,000 ordinary shares at 40 cents each Required: Calculate the basic earnings per share for the year ended 31 December Year 2.