Neco Model Questions Vol1 2019 Financial Accounting Question 2
Practice objective / multiple choice question 2 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
XYZ Ltd has 10,000 ordinary shares of \(\text{₦}10\) each and 2,000 preference shares of \(\text{₦}50\) each carrying an 8 % dividend. The profit after tax for the year is \(\text{₦}1,200,000\). After paying the preference dividend, the company declares a 20 % bonus issue on the ordinary shares, funded from retained earnings. Calculate the earnings per ordinary share (EPS) after the bonus issue, expressing your answer in naira to two decimal places.
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About This Question
This is Neco Model Questions Vol1 2019 Financial Accounting Question 2. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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