1 The Issued Capital of a company is (A) Always the same as the Authorised Capital (B) The same as Preference Share Capital (C) Equal to the reserves of the company (D) None of the above 2 A company...

1

The Issued Capital of a company is

(A) Always the same as the Authorised Capital

(B) The same as Preference Share Capital

(C) Equal to the reserves of the company

(D) None of the above

2

A company wishes to pay out all available profits as dividends. Net profit is £26,600. There

are 20,000 8% Preference shares of £1 each, and 50,000 Ordinary shares of £1 each. £5,000 is to be

transferred to General Reserve. What Ordinary dividends are to be paid, in percentage terms?

(A) 20 per cent

(B) 40 per cent

(C) 10 per cent

(D) 60 per cent