The Equity accounts of Blydskap Ltd are shown below:

Ordinary Share Capital (R2 par value)                  R200 000

Share Premium                                                     80 000

Retained Profits                                                   100 000

Total Shareholders' Equity                                                380 000

If Blydskap?s shares sell for R10 per share, and a 10% scrip dividend is declared,

How many new shares will be distributed?

1. Redraft the Equity accounts section of the balance sheet.

2. Has this been a wise decision? Explain. 

3. Tygerberg Ltd has declared an annual dividend of 90c per share.

Their after tax profits for the year was R60 000 and they have 12 000 share in issue.

4. Calculate profit per share. 

5. What is their payout ratio?