Firm a on 1 January X1 Has 6,000 Shares Outstanding

Multiple Choice

Firm A on 1 January X1 has 6,000 shares outstanding and holds 100 shares in treasury stock.On 1 January X1 shares trade at 13 CU per share.On 1 July,it acquires,at 13.5 CU per share,an additional 600 of its own shares in anticipation of service of managers' stock options.On October 1,managers exercise their stock options and the firm sells them the full 700 shares it held in treasury at a price of 14 CU per share as agreed when the options were granted.The market value of a share on October 1 is 16 CU per share.For X1,earnings after tax (attributable to ordinary equity holders) were 18,330 CU.The basic earnings per share for X1 amounts to:

A) 3.45 CU
B) 3.12 CU
C) 2.73 CU
D) 2.88 CU