Neco 2020 Financial Accounting Question 38
Practice objective / multiple choice question 38 from the 2020 Neco Financial Accounting examination.
XYZ Ltd has 10,000 ordinary shares of \(\text{₦}100\) par value each at the beginning of the year. During the year it earned a net profit of \(\text{₦}500,000\). A 20 % dividend on the par value was declared on the original shares. On 1 July the company issued an additional 2,000 shares at a premium of \(\text{₦}20\) per share. Compute the earnings per share (EPS) for the year, assuming the dividend is paid out of profit.
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About This Question
This is Neco 2020 Financial Accounting Question 38. It is one of the objective questions from the 2020 Neco Financial Accounting examination.
Difficulty level: Hard .
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