Calculate the amount that will be paid per share

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Question - ABC Company has paid dividends for the last 3 years as follows:

2012 2,500,000

2013 3,500,000

2014 6,500,000

During the last 3 years, the company has the following outstanding share capital:

100,000 shares of P100 par, 12% preference share capital, and 500,000 shares of P10 par ordinary share capital.

Dividends are in arrears for 2 years at the beginning of 2012.

Instruction - Calculate the amount that will be paid per share and in total on preference shares and ordinary shares for each year under each of the following independent assumption:

1. Non-cumulative and non-participating.

2. Cumulative and non-participating.

3. Non-cumulative and participating.

4. Cumulative and participating.

5. Non-cumulative and participating up to an additional 8 percent.

Reference no: EM132981915

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