1.1 Ooti Ltd has recently embarked on a share redistribution scheme. The Equity accounts of Ooti Ltd before the scheme are shown below: Ordinary Share Capital (R2 par value) R200 000 Share Premium R80 000 Retained Profits R100 000 Total Shareholders Equity R380 000.

Required

1.1.1 If Ooti Ltds shares sell for R10 per share, and a 10% dividend is declared, calculate how many new shares were be distributed?.

1.1.2 Redraft the Equity accounts section of the Statement of Financial Position/ Balance Sheet.

1.1.3 Has this been a wise decision? Explain.

1.2. Shanghai Ltd has declared an annual dividend on 90c per share. Their after tax profits for the year was R60 000 and they have 12 000 shares in issue.

1.2.1 Calculate the profit per share. (4) 1.2.2 Determine the payout ratio.