- 1 Marks
Question
A dividend of 10% on the nominal value of a company with 100,000 ordinary shares of 50k nominal value has been declared. How much will a shareholder receive as dividend if he has 10,000 shares?
A. N200
B. N400
C. N500
D. N1,000
E. N5,000
Answer
C. N500
Explanation:
The total dividend for one share is 50k × 10% = 5k. Therefore, for 10,000 shares, the total dividend is 10,000 × 5k = N500.
- Tags: Accounting Calculations, Dividends, Shareholder Payments
- Level: Level 1
- Topic: Elements of Financial Statements
- Series: NOV 2013
- Uploader: Theophilus