lants Ltd operates garden centres but would like to raise some finance to fund their expansion plans. Plants Ltd has run profitably for many years and has no overdraft. Plants Ltd is currently financed by equity and has 100,000 £1 in issue. Each year the company pays an interim dividend of 0.5p and final dividend of 1.5p per share. The payment of this dividend means that most of the profits are paid out to shareholders each year with little being transferred to reserves. Required a) Calculate the int
lants Ltd operates garden centres but would like to raise some finance to fund their expansion plans. Plants Ltd has run profitably for many years and has no overdraft. Plants Ltd is currently financed by equity and has 100,000 £1 in issue. Each year the company pays an interim dividend of 0.5p and final dividend of 1.5p per share. The payment of this dividend means that most of the profits are paid out to shareholders each year with little being transferred to reserves. Required a) Calculate the int
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 6.
Plants Ltd operates garden centres but would like to raise some finance to fund their expansion plans. Plants Ltd has run profitably for many years and has no overdraft.
Plants Ltd is currently financed by equity and has 100,000 £1 in issue. Each year the company pays an interim dividend of 0.5p and final dividend of 1.5p per share. The payment of this dividend means that most of the profits are paid out to shareholders each year with little being transferred to reserves.
Required
- a) Calculate the interim and final dividend due for the current year.
- b) Explain the ways a business can internally and externally finance its activities and suggest a course of action for Plants Ltd.
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