Company Accounts

[Hakuna Matata]

Confused with the calculation of dividend. Please show me the workings....

 

[Triest123]

Confused with the calculation of dividend. Please show me the workings....

=> Preference share dividends :
(10% x $100,000) + (8% x $80,000)
=$16,400

No. of ordinary shares issued = $200,000 / $0.25 = 800,000 ordinary shares

Ordinary share dividends :
Interim : 800,000 shares x $0.01 = $ 8,000
Final : 800,000 shares x $0.02 = $16,000
Total $24,000

 

[Hakuna Matata]

Thanks.....

I'm confused with the workings...
10% preference share of 50c each = 100000 issued share X 50c = 50000
and then, 50000 X 10% = 5000 isn't....

No. of ordinary shares issued = $200,000 / $0.25 = 800,000 ordinary shares

How is that?

I thought the calculation is this way....

Issued ordinary share = 200000 X 25c = 50000
and then, 50000 X 1c = 500 (interim)
50000 X 2c = 1000 (final)

Please explain.....

 

[Triest123]

Thanks.....

I'm confused with the workings...
10% preference share of 50c each = 100000 issued share X 50c = 50000
and then, 50000 X 10% = 5000 isn't....

No. of ordinary shares issued = $200,000 / $0.25 = 800,000 ordinary shares

How is that?

I thought the calculation is this way....

Issued ordinary share = 200000 X 25c = 50000
and then, 50000 X 1c = 500 (interim)
50000 X 2c = 1000 (final)

Please explain.....

=> According to your workings,
In preference share dividend :
the "100000" is the total "nominal value" of the issued preference shares NOT the
"number" of issued preference shares

In ordinary share dividend : the "200000" is the total "nominal value" of the issued
ordinary shares NOT the "number" of issued ordinary shares

Pls study the question carefully !

 

[Hakuna Matata]

Let me learn the basics and come back to you if any doubt....

 

[Hakuna Matata]

Can you refer me some learning websites and materials for this topic?

 

[Hakuna Matata]

Which time will be available to chat on this topic?