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Question 2 Marker Sdn Bhd has issued 5,000,000 ordinary shares for RM250,000 and 2,000,000, 7% preference shares for RM2,000,000. Its profits after taxation for the

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Question 2 Marker Sdn Bhd has issued 5,000,000 ordinary shares for RM250,000 and 2,000,000, 7% preference shares for RM2,000,000. Its profits after taxation for the year to 30 September 2018 were RM8,400,000. The management board has decided to pay an ordinary dividend (ie a dividend on ordinary shares) which is 50% of profits after tax and preference dividend. Required: Calculate the amount in total of dividends and of retained profits, and calculate the dividend per share on ordinary shares. (10 marks)

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