The directors of Olu Ltd. recommended a dividend of 10% on 1,000,000 ordinary share capital of N2.00 each. The amount of dividend declared is?

A. N200,000
B. N100,000
C. N20,000
D. N10,000

Correct Answer:

Option A = N200,000

Explanation
value of shares N2 x 1,000,000 shares
= N2,000,000
10% = 10/100 x 2,000,000 = 200,000