1)Canada Ltd issued 15 000 shares with an issue price of $1.50 on which the full price has been paid to the company. The maximum additional amount the shareholders can be asked to contribute if the company cannot pay its debts is:

Select one:

a. $1.50 per share or $22 500.

b. Nil

c. $1.50 - 50c per share or $7 500

d. There is no limit on the amount the shareholders can be asked to contribute

2)Canada Ltd had a profit of $300 000 before tax, after deducting $27 000 in interest expense. Canada Ltd's liabilities and equity total $2 725 000. Return on total assets, before finance costs and tax is:

Select one:

a. unable to be calculated from the information provided.

b. 10.4%.

c. 11.0%.

d. 12.0%.

3)Canada Ltd was incorporated on 1 January 2018 and on that date issued:

5% Preference shares	for $10	4 000 shares
Ordinary shares	for $100	5 000 shares

During December 2020 Canada Ltd declared a total of $ 50 000 in dividends. This was the first dividend declared by Canada Ltd, that is, no dividends were declared since the date of incorporation. If the preference shares are cumulative, the total amount of the $50 000 dividend that will be available for payment to the ordinary shareholders is:

Select one:

a. None of the options

b. $10 000.

c. $44 000.

d. $10 000.

e. $40 000.

4)In January 2020, Canada Ltd declared and distributed a 12% share dividend (bonus issue) when share capital was $300 000. What is the effect on total shareholders equity?

Select one:

a. No effect

b. $36 000 decrease

c. $36 000 increase

d. It depends on the price of the bonus issue