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WAEC Financial Accounting 2003 Question 9

Question 9

Company Accounts

Net profit for the year N75,000
Ordinary share capital of 50 kobo each N65,000
10% Preference shares of 50 kobo each N100,000
Dividend per ordinary share is

  1. A.N1.00
  2. B.N0.50
  3. C.N0.45
  4. D.N0.40
Show the answer and explanation

Answer: B (N0.50)

Explanation

N65,000 ÷ 50 kobo = 130,000 shares; 65,000 ÷ 130,000 = N0.50 per share.