Neco 2020 Financial Accounting Question 38

Practice objective / multiple choice question 38 from the 2020 Neco Financial Accounting examination.

Neco 2020 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 38 NECO • 2020 • FINANCIAL_ACCOUNTING • objective

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.

Answer Options

A. 25.00
B. 45.45
Correct Answer C. 27.27
D. 30.00
Correct Answer
C
Correct Option:
27.27

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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