A company with an authorised share capital of $200 000 has issued 100 000 ordinary shares of

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A company with an authorised share capital of $200 000 has issued 100 000 ordinary shares of $1. It has also issued $100 000 6% debentures. Operating profit is $20 000. A transfer of $10 000 is to be made to the General Reserve.

What is the maximum dividend that can be paid on the ordinary shares?

A. 2%

B. 4%

C. 5%

D. 7%

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Accounting A Level And AS Level

ISBN: 9780521539937

1st Edition

Authors: Harold Randall

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Question Posted: Aug 28, 2023 01:51 PM

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A company with an authorised share capital of $200 000 has issued 100 000 ordinary shares of

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Accounting A Level And AS Level

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