During the Year,Success Ltd Shares Have Increased from $8 to $9

question 20

Multiple Choice

During the year,Success Ltd shares have increased from $8 to $9 and shareholders received a final dividend of 50 cents per share,fully franked at the company tax rate of 30 per cent.Using the information above,calculate the dividend yield after company tax but before personal tax (using the beginning of the year share price) on Success shares.

• A)13.89%
• B)7.94%
• C)6.25%
• D)8.93%

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Definitions:

Supplies

Items or materials used in the daily operations of a business.

Unearned Revenue

Money received by a business for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.

Services Revenue

Revenue generated from providing services, as opposed to selling goods or products.

Asset Account

An account that records the value of an entity's resources, such as cash, equipment, inventory, and property.