Question 4

As at 1 July 2018, Justice Ltd had 7 800 000 fully paid-up ordinary shares on issue. During the year thecompany:

• bought back 2 600 000 fully paid ordinary shares on 1 December 2018 at prevailing market price
• issued 1 900 000 partly paid ordinary shares on 1 March 2019 at an issue price of $5.00. The shareswere partly paid to $2.00. 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 year, Justice Ltd had 500 000 $2.00 cumulative preference shares, disclosed as equity, which provide dividends at a rate of 15% per year.

What is the WANOS on which basic earnings per share will be calculated for the year ending

30 June 2019? Show all workings.