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Hi there, I'm an A Level Accounting student who is seeking advice on the question below.
I do not know how to do this because the answer is D, and if the share price was 4.8 then that would mean there is a premium of 3.8 per shares. How would this influence the dividends paid? I thought share premium accounts were used for rights issue and bonus issues and not for dividends.
I do not know how to do this because the answer is D, and if the share price was 4.8 then that would mean there is a premium of 3.8 per shares. How would this influence the dividends paid? I thought share premium accounts were used for rights issue and bonus issues and not for dividends.