C. Basic earnings per share for 31 December 20x0 is MU4.95 which is calculated as follows {MU5,750,000 ÷ [1,000,000 + (650,000 ÷ 12 x 3)]}. The 650,000 share issue does NOT affect prior periods.

According to the relevant accounting principles, when new shares are issued during the year, the weighted average number of shares outstanding should take into account the time the new shares were outstanding during the reporting period. In this case, the 650,000 shares were issued on 30 September 20x0, so they should be weighted for the remaining four months of the year (from 30 September to 31 December). Therefore, the calculation of basic earnings per share for 31 December 20x0 should consider the impact of the new shares issued on 30 September. As such, the calculation is correct in option C, which calculates the basic earnings per share as MU5,750,000 divided by the sum of the original 1,000,000 shares and the proportion of the 650,000 new shares that were outstanding for the last four months of the year (650,000 ÷ 12 x 3). The new share issue does not affect prior periods since it occurred after the beginning of the reporting period.