Neco 2021 Financial Accounting Question 15
Practice objective / multiple choice question 15 from the 2021 Neco Financial Accounting examination.
Company ABC has 1,000,000 ordinary shares of \(\text{N}1\) each and 100,000 cumulative preference shares of \(\text{N}2\) each, carrying a \(10\%\) dividend. The profit after tax for the year is \(\text{N}5,000,000\). Preference dividends are in arrears for two years, including the current year. During the year the company bought back 50,000 ordinary shares at \(\text{N}5\) each on 1 January and issued an additional 200,000 ordinary shares at \(\text{N}8\) each on 1 July. Calculate the earnings per ordinary share (EPS) for the year, rounding to two decimal places.
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About This Question
This is Neco 2021 Financial Accounting Question 15. It is one of the objective questions from the 2021 Neco Financial Accounting examination.
Difficulty level: Hard .
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