• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

Calculating total dividends for the year

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Calculating total dividends for the year

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 8, 2015 at 10:45 pm #289369
    Avatarkfaz
    Member
    • Topics: 6
    • Replies: 6
    • ☆

    Dear Mr Moffat,

    This is a question from Kaplan’s F3 book.

    A company has the following share capital:

    —————————————-Authorised —- Issued
    ……………………………………$000…………..$000
    25c ordinary shares……………8,000…………4,000
    6% 50c preference shares……2,000…………1,000

    In addition to providing for the year’s preference dividend, an ordinary dividend of 2c per share is to be paid before the year end. What are the total dividends for the year?

    This is how I would calculate it:
    Ordinary dividend = 2c x 4,000,000 = 80,000
    Preference dividend = 0.06 x 1,000,000 = 60,000
    Total = 140,000

    However, this is the solution:
    Ordinary dividends = 16,000,000 x 0.02 = 320,000
    Preference dividends = 6% x 1,000,000 = 60,000
    Total = 380,000

    I really don’t understand why the solution uses $16,000,000 to get to the ordinary dividends…

    Thank you in advance!

    December 9, 2015 at 8:32 am #289459
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    The total issued share capital is $4M.

    They are 25c shares, and therefore the total number of shares so as to get a total nominal value of $4M is $4M / $0.25 = 16M

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • CartelAwper on ACCA BT Chapter 3 – An organisation’s stakeholders – Questions
  • Colossus on Presentation of financial statements – Example 1 (revision) – ACCA Financial Reporting (FR)
  • Jay15 on Relevant cash flows for DCF Inflation (example 5) – ACCA Financial Management (FM)
  • oabilentatiwa on Process Technology and Quality control – CIMA E1
  • Inspire on SWOT Analysis – ACCA Strategic Business Leader (SBL)

Copyright © 2026 · Contact · Advertising · OpenLicense · About · Sitemap · Privacy Policy · Cookie settings · Comments · Log in