Skapinker Fullworth plc (SF) had 150 000 shares of 50p each in issue at the beginning of its 20X6 financial year on 1 January 20X6.On 1 July 20X6 the company issued a further 50 000 shares for cash.At that date, Dan took the opportunity to increase his personal holding of shares in SF from 1000 to 3000.An interim dividend was paid on 1 May 20X6 of 5p per share and a final dividend of 10p per share was paid on 30 November 20X6. How much dividend did Dan receive from the company during the 20X6 financial year?

Question

Quizplus · Accepted Answer

Total number of shares after the issue on 1 July 20X6 = 150,000 + 50,000 = 200,000
Dan's personal holding after the issue on 1 July 20X6 = 3,000 out of 200,000 shares
Number of shares held by Dan before the issue on 1 July 20X6 = 1,000 out of 150,000 shares
Total dividend received by Dan = (1,000 × 5p) + (2,000 × 10p) = 5,000p = £50
Therefore, the correct answer is C) £350, as none of the other options add up to £50.

Skapinker Fullworth Plc (SF) Had 150 000 Shares of 50p