Sharp Motorhomes plc floated 90% of its ordinary share capital of £500 000 on the stock market on 15 January 20X6.The remainder was retained by the Sharp family.On 31 May 20X6 an interim dividend of 3% was paid followed by a final dividend of a further 3% on 30 November 20X6.What was the total dividend payment recorded by the company in the 20X6 calendar year?

Question

Quizplus · Accepted Answer

- 90% of £500,000 = £450,000 was floated on the stock market
- Total dividend payment = Interim dividend + Final dividend
- Interim dividend = 3% of £450,000 = £13,500
- Final dividend = 3% of £450,000 = £13,500
- Total dividend payment = £13,500 + £13,500 = £27,000
- However, the question asks for the total dividend payment in the 20X6 calendar year, which means we need to include both the interim and final dividend.
- Therefore, the total dividend payment for 20X6 is £27,000 x 2 = £30,000.

Sharp Motorhomes Plc Floated 90% of Its Ordinary Share Capital