Neco Model Questions Vol1 2019 Financial Accounting Question 28
Practice objective / multiple choice question 28 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
A company has 10,000 ordinary shares of \(\text{N}1\) each and 2,000 preference shares of \(\text{N}5\) each, carrying a 10% dividend. During the year the company earned a profit before tax of \(\text{N}500,000\). Tax is charged at 30% of profit before tax. Preference dividends are paid out of profit after tax. The company also bought back 500 ordinary shares at \(\text{N}12\) each during the year; these shares are held as treasury shares and are not counted in earnings‑per‑share calculations. Compute the earnings per ordinary share (EPS) for the year, giving the answer to two decimal places.
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About This Question
This is Neco Model Questions Vol1 2019 Financial Accounting Question 28. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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