Question
Zenith Enterprises commenced trading on 1 March 2010. Over the first five years, the following financial results were recorded: In 2011, the company had a
Zenith Enterprises commenced trading on 1 March 2010. Over the first five years, the following financial results were recorded: In 2011, the company had a trading loss of £10,000 with no profit or loss on non-current assets but an upward revaluation of £6,000. In 2012, the trading profit was £12,000, with a profit on non-current assets of £1,000 and an upward revaluation of £4,000. In 2013, the trading profit was £14,000, with a profit on non-current assets of £2,500 and an upward revaluation of £7,000. In 2014, the trading profit was £19,000, but there was a loss on non-current assets of £5,000 with no upward revaluation. Finally, in 2015, the trading profit was £23,000, with a profit on non-current assets of £1,500 and an upward revaluation of £2,000.
Required: Assume that the company paid the maximum legal dividend each year. Under normal circumstances, how much would each year's dividend be?
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