QUESTION FOUR 4.1 The Equity accounts of Mountain Ltd are shown below: Ordinary Share Capital (R2 par value) R200 000 Share Premium 80 000 Retained Profits 100 000 Total Shareholders' Equity 380 000 4.1.1 If Mountain's shares sell for R10 per share, and a 10% dividend is declared, how many new shares will be distributed? 4.1.2 Redraft the Equity accounts section of the balance sheet. 4.1.3. Has this been a wise decision? Explain. (2) 4.2. Mountain Ltd has declared an annual dividend of 90c per share. Their after tax profits for the year was R60 000 and they have 12 000 shares in issue. 4.2.1 Calculate the profit per share. 4.2.2 Determine the payout ratio. (6)