June 05 DFS exam

System
System Posts: 100,534 🤖 Admin 🤖
I'm just working through this exam paper and i'm stuck on task 1.1 and trying to work out how they got the dividends figure for the P&L account.
The final dividend is £1,600,000 plus £2,400,000 Interim dividend. It's the interim dividend that i'm not sure how they've got to.
I've read the assessors report and it says that 'the final dividend of 6p was thus to be calculated on 40,000,000 shares rather that on 10,000,000 shares'.
What i'd like to know is, where did the assessor get 40,000,000 shares from.
i've looked through the exam paper over and over again and i can't seem to work it out, maybe someone out there can shed some light onto this for me.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:June 05 DFS exam

    If it is the one I think it is the 10,000 is made up of 0.25 pence per share
    therefore: 10,000 / 0.25 = 40,000

    40,000 x proposed 0.06 = 2400

    hope this makes sense.

    Sharon
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:June 05 DFS exam

    Thx for the help, i can see it now, i've been doing 10,000 x .25 instead of 10,000 / .25.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:June 05 DFS exam

    Thx for the help, i can see it now, i've been doing 10,000 x .25 instead of 10,000 / .25.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:June 05 DFS exam

    Thx for the help, i can see it now, i've been doing 10,000 x .25 instead of 10,000 / .25.
Privacy Policy