TTS Enterprises Limited has ordinary share capital of 40 000 shares of 12.5p each.In the year ended 31 May 20X7, an ordinary dividend of 4.5p per share was proposed and paid.Charles owns 10% of the issued share capital of the company.How much was his entitlement in respect of this dividend?

Question

Quizplus · Accepted Answer

Total dividend paid = 40,000 shares x 4.5p = £1,800
Charles owns 10% of the issued share capital, which is 4,000 shares (40,000 x 0.1)
Charles' entitlement = 4,000 shares x 4.5p = £180.00

TTS Enterprises Limited Has Ordinary Share Capital of 40 000