Elfrida plc has share capital of £7 500 000 in 50p ordinary shares.In the year ended 31 December 20X1 Elfrida plc paid a total of £675 000 in dividends to its ordinary shareholders. What was the dividend per share for the year ended 31 December 20X1.

Question

Quizplus · Accepted Answer

Dividend per share = Total dividends paid ÷ Number of outstanding shares
Number of outstanding shares = Share capital ÷ Nominal value per share
Number of outstanding shares = £7,500,000 ÷ 0.50 = 15,000,000 shares
Dividend per share = £675,000 ÷ 15,000,000 shares = 0.045p or 4.5p (rounded to nearest penny)

Elfrida Plc Has Share Capital of £7 500 000 in 50p