9706/12 Accounting March 2024 Online Test | Cambridge AS & A Level MCQ
Radis Limited pays dividends on ordinary shares in the range of 8% to 12% each year.
The current dividend is $20 000. The directors do not wish to increase this by more than 25% in the coming year.
There are currently 400 000 ordinary shares of $0.50 each in issue. The company now wishes to issue more shares.
What is the maximum number of shares it can issue while keeping its dividend in the usual range?