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Company has 10000 shares, issued dividend of 10rs, tax 25%
what is total net profit ?
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Answer / giri
Net profit cannot be ascertained because it is not given
that how much %age of net profit is given as dividend and
how much is retained back by the companies. But if all the
amount of net profit is distributed as dividend then Net
profit before tax is 1,25,000 and net profit after tax is
1,00,000 if there is no preference dividend.
| Is This Answer Correct ? | 8 Yes | 3 No |
Answer / vindraj
Hi Guys... Jus to add to Giri's answer:
The dividend is paid after tax is Rs. 1,00,000
(10,000 shares @ Rs.10 per share)
Tax @ 25% (1,00,000 x 25/75) Rs. 33,333
Profit before tax: Rs. 1,33,333
| Is This Answer Correct ? | 5 Yes | 2 No |
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