单选题
If a company had 120,000, 4% preference shares of ＄1 each and 250,000 ordinary shares of ＄ 1 each, then the dividends would be payable as follows:
Year 1 Year 2 Year 3 Year 4 Year 5
＄ ＄ ＄ ＄ ＄
Total Profits appropriated for dividends 7,000 3,000 20,000 4,000 5,000
Required:
(a)If the preference shares are cumulative, non-participating, calculate the preference dividends and ordinary dividends in each year.
(b)If the preference shares are cumulative, participating, calculate the preference dividends and ordinary dividends in each year.
【正确答案】
【答案解析】(a)If the preference shares are cumulative, non-participating
Year 1 Year 2 Year 3 Year 4 Year 5
＄ ＄ ＄ ＄ ＄
Preference Dividends (4%) 4,800 3,000 6,600 4,000 5,000
Ordinary Dividends 2,200 — 13,400 — —
(b)If the preference shares is cumulative, participating
Year 1 Year 2 Year 3 Year 4 Year 5
＄ ＄ ＄ ＄ ＄
Preference Dividends (4%) 4,800 3,000 1,800 4,000 200
(4%) (2.5%) (in arrears) (3.33%) (in arrears)
4,800 4,800
(4%) (4%)
1,103 —
(0.92%) 5,000
5,903
Ordinary Dividends 2,200 — 10,000 — —
(0.88%) (4%)
2,297
(0.92%)
12,297