In an organisation, profit after interest, tax and dividend on preference shares is ₹4,00,000. The number of equity shares is 40,000 and the dividend payout ratio is 40%. The dividend per share is —

CS Executive · Cost and Management Accounting · PYQS · December 2014
In an organisation, profit after interest, tax and dividend on preference shares is ₹4,00,000. The number of equity shares is 40,000 and the dividend payout ratio is 40%. The dividend per share is —
(A) ₹4
(B) ₹25
(C) ₹10
(D) ₹6.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) ₹4. Dividend/share = (4,00,000×40%)/40,000 = 4.

Topics: Financial Statement Analysis

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