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WAEC Commerce 2008 Question 50

Question 50

Business Calculations

A shareholder who holds 100,000 shares of 50 butts each is given a dividend of 10 per cent less 2 per cent tax. What is his net return?

  1. A.D10,000.00
  2. B.9,800.00
  3. C.D5,000.00
  4. D.D4,900.00.
Show the answer and explanation

Answer: D (D4,900.00.)

Explanation

Share value = 100,000 × 50 butts = D50,000; dividend 10% = D5,000; less 2% tax (D100) = D4,900.