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Dividend Capacity Required (M/J-2018)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Dividend Capacity Required (M/J-2018)

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  • February 7, 2020 at 8:44 am #560994
    arjun585
    Participant
    • Topics: 4
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    • ☆

    Dear Sir John, My question is how to calculate dividend capacity required ( Q-3-b -2018). I am not understanding why 90 million is multiplied by 4/3. Please clarify it sir. Thanks

    February 7, 2020 at 2:42 pm #561015
    John Moffat
    Keymaster
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    Until 3 months ago there were 90M shares in issue. They then had a 1 for 3 rights issue which means they issued another 30M shares bringing the total to 120M shares (which is the same as 90M x 4/3).

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