XPP Limited has share capital of £22 000, split into 20p ordinary shares.Three-quarters of the way through the financial year ended 31 August 20X2 the company declared and paid a dividend of 40p per ordinary share. Pelham owns 1600 shares in XPP Limited.
What was the value of his dividend received from the company in the year ended 31 August 20X2?

Question

Quizplus · Accepted Answer

Total dividend paid by the company = 40p x 1600 = £640
Pelham's dividend = 1600 shares x 40p per share = £640

XPP Limited Has Share Capital of £22 000, Split into 20p