Neco Model Questions Vol1 2023 Financial Accounting Question 45
Practice objective / multiple choice question 45 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
A company has the following capital structure at year‑end:\n\n- Ordinary shares: 50,000 shares of \(\₦2\) each, fully paid.\n- Preference shares: 5,000 shares of \(\₦5\) each, 10% cumulative dividend, unpaid last year.\n\nDuring the year the company earned a profit before tax of \(\₦240,000\). The tax rate is 30%. The company also paid an ordinary‑share dividend of \(\₦12,000\) during the year, but no preference dividend was paid. Determine the earnings per ordinary share (EPS) for the year, taking into account the cumulative preference dividend in arrears.
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This is Neco Model Questions Vol1 2023 Financial Accounting Question 45. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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