On 1 July 2021, the beginning of the reporting period, Arthur Ltd has 40 000 ordinary shares on issue. On 1 April 2022, Arthur Ltd issued a further 10 000 ordinary shares for cash. The weighted average number of shares for use in the earnings per share calculation is:

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The weighted average number of shares is calculated by taking into account the time each share quantity was outstanding during the period. For 9 months (July to March), there were 40,000 shares, and for the remaining 3 months (April to June), there were 50,000 shares. The calculation is (40,000 shares * 9/12) + (50,000 shares * 3/12) = 42,500 shares.

On 1 July 2021, the Beginning of the Reporting Period