QUESTION 1:
Trail Ltd’s issued share capital has not changed since incorporation on 1 January 2020,
and consists of:
400 000 Ordinary shares (issued at R2 each)
150 000 9% Preference shares (issued at R2 each)
180 000 10% Cumulative preference shares (issued at R3 each)
No dividends were declared in the previous two financial years, but at the end of the
current financial year on 31 December 2023, a dividend of 15c per ordinary share was
declared.
REQUIRED:
Which one of the following amounts will be the total dividend expense
on 31 December 2023?
Ordinary dividned (400 000 x 0,15) 60 000
9% preference shares (150 000 x R2 x 9%) 27 000
10% preference shares (180 000 x R3 x 10% x 3 years) 162 000
249 000
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