Assume dividends tax at a rate of 20% A company has had two issues of Class B shares, which have no voting rights, but they do have a right to a fixed annual dividend of 10% of the face value of R2. In years when a tranche of Class B shares is issued, dividends on that tranche will be apportioned based on the number of months between the date of issue and the date of declaration. The first issue was on 1 June 2011, when 4 million shares were issued for face value. The second issue was on 1 October 2021, when 6 million share were issued for a price of R2.50 per share. On 30 June 2022, the company declared a Class B dividend. This was the first dividend declaration by the company since 30 June 2019. The dividend payment date was 20 July 2022. 38% of Class B shareholders (on both tranches issued) are SA-resident companies. The full value of the Class B dividend declared on 30 June 2022 was R The amount of this dividend withheld by the company and paid to SARS is R
Assume dividends tax at a rate of 20% A company has had two issues of Class B shares, which have no voting rights, but they do have a right to a fixed annual dividend of 10% of the face value of R2. In years when a tranche of Class B shares is issued, dividends on that tranche will be apportioned based on the number of months between the date of issue and the date of declaration. The first issue was on 1 June 2011, when 4 million shares were issued for face value. The second issue was on 1 October 2021, when 6 million share were issued for a price of R2.50 per share. On 30 June 2022, the company declared a Class B dividend. This was the first dividend declaration by the company since 30 June 2019. The dividend payment date was 20 July 2022. 38% of Class B shareholders (on both tranches issued) are SA-resident companies. The full value of the Class B dividend declared on 30 June 2022 was R The amount of this dividend withheld by the company and paid to SARS is R
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume dividends tax at a rate of 20%
A company has had two issues of Class B shares, which have no voting rights, but they do have a right to a fixed annual dividend of 10% of the face
value of R2. In years when a tranche of Class B shares is issued, dividends on that tranche will be apportioned based on the number of months
between the date of issue and the date of declaration.
The first issue was on 1 June 2011, when 4 million shares were issued for face value. The second issue was on 1 October 2021, when 6 million shares
were issued for a price of R2.50 per share. On 30 June 2022, the company declared a Class B dividend. This was the first dividend declaration by the
company since 30 June 2019. The dividend payment date was 20 July 2022. 38% of Class B shareholders (on both tranches issued) are SA-resident
companies.
The full value of the Class B dividend declared on 30 June 2022 was R
The amount of this dividend withheld by the company and paid to SARS is R
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