Solved

Williams Plc Has Issued 2,000,000 £1 Ordinary Shares and 1,200,000

Question 5

Multiple Choice

Williams plc has issued 2,000,000 £1 ordinary shares and 1,200,000 5% preference shares of £1 each. If the directors pay an ordinary dividend of 6 pence per ordinary share and the full amount payable to the preference shareholders is paid, which one of the following is true?


A) The ordinary dividend payable would be £120,000 and the preference dividend payable will be £72,000.
B) The ordinary dividend payable would be £100,000 and the preference dividend payable will be £72,000.
C) The ordinary dividend payable would be £120,000 and the preference dividend payable will be £60,000.
D) The ordinary dividend payable would be £100,000 and the preference dividend payable will be £60,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents