ECZ 2019 · GCE Paper 1 — Social and Commercial Arithmetic

A company's working capital consists of 450 10% preference shares of K50.00 each and 700 ordinary shares of K10.00 each. After 6 months, the company declared a dividend of K5 750.00. How much dividend will be paid to each ordinary shareholder?

  • A. K8.20
  • B. K2 250.00
  • C. K5.00
  • D. K3.50

Verified working — step 1

"Preference" means paid FIRST: settle the preference shareholders' fixed dividend, then share what remains among the ordinary shares.

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Original examination question © Examinations Council of Zambia. Worked solution and commentary © G12 Titan — not to be reproduced without permission.

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