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Dec 2015

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Dec 2015

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
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    Posts
  • April 12, 2019 at 4:21 am #512015
    toushiga
    Participant
    • Topics: 424
    • Replies: 172
    • ☆☆☆☆

    Hello Sir,
    Its from PYQ Dec2015
    Q1
    (vii) Moston paid a dividend of 20 cents per share on 30 March 2015, which was followed the day after by an issue of 10 million equity shares at their full market value of $1·70. The share premium on the issue was recorded in other components of equity

    if the div is paid after the share issue ,the div paid should be 30000x 0.20=6000?why the answer based on the 20000shares/20m shares?
    Thank you.

    April 12, 2019 at 4:53 pm #512108
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    Hi,

    The dividend was paid before the day of the share issue and hence the new shares are not entitled to the dividend.

    Thanks

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