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A company has £25,000,000, equity shares at a nominal value of £5.00 each and 50,000 5% preference shares at a nominal value of £2.50 each. The directors paid a dividend of 10p per equity share in the year and are going to propose an equity dividend of 5p per share at the AGM. The total amount to be included as a distribution from reserves in the year is: Multiple Choice £3,756,250. £506,250. £2,506,250. £756,250.

A company has £25,000,000, equity shares at a nominal value of £5.00 each and 50,000 5% preference shares at a nominal value of £2.50 each. The directors paid a dividend of 10p per equity share in the year and are going to propose an equity dividend of 5p per share at the AGM. The total amount to be included as a distribution from reserves in the year is: Multiple Choice £3,756,250. £506,250. £2,506,250. £756,250.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company has £25,000,000, equity shares at a nominal value of £5.00 each and 50,000 5% preference shares at a nominal value of £2.50 each. The directors paid a dividend of 10p per equity share in the year and are going to propose an equity dividend of 5p per share at the AGM. The total amount to be included as a distribution from reserves in the year is: Multiple Choice £3,756,250. £506,250. £2,506,250. £756,250.
Transcribed Image Text:A company has £25,000,000, equity shares at a nominal value of £5.00 each and 50,000 5% preference shares at a nominal value of £2.50 each. The directors paid a dividend of 10p per equity share in the year and are going to propose an equity dividend of 5p per share at the AGM. The total amount to be included as a distribution from reserves in the year is: Multiple Choice £3,756,250. £506,250. £2,506,250. £756,250.
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