Scribd
Upload
235 views1 page

CASE 4: Cumulative Participating Preference Share

The document outlines 4 cases for calculating dividend per share for preference and ordinary shares. Case 1 calculates dividend per share for non-cumulative, non-participating preference shares. Case 2 calculates dividend per share for cumulative, non-participating preference shares. Case 3 calculates dividend per share for non-cumulative, participating preference shares. Case 4 calculates dividend per share for cumulative, participating preference shares.

Uploaded by

Christine Altamarino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
235 views1 page

CASE 4: Cumulative Participating Preference Share

The document outlines 4 cases for calculating dividend per share for preference and ordinary shares. Case 1 calculates dividend per share for non-cumulative, non-participating preference shares. Case 2 calculates dividend per share for cumulative, non-participating preference shares. Case 3 calculates dividend per share for non-cumulative, participating preference shares. Case 4 calculates dividend per share for cumulative, participating preference shares.

Uploaded by

Christine Altamarino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

F.

DIVIDEND PER SHARE

CASE 1: Non-Cumulative; Non-Participating Preference Shares


PREFERENCE ORDINARY TOTAL
Outstanding
PS (300,000 sh - 100,000 sh = 200,000 sh x P20) 4,000,000
OS (800,000 sh - 200,000 sh = 600,000 sh x P10 par) 6,000,000
Dividend 5,000,000
Preference Share (4,000,000 x 10% x 1 yr) 400,000 (400,000)
Ordinary Share 4,600,000 (4,600,000)
Total Dividend 400,000 4,600,000 (5,000,000)
Divide by Outstnding shares 200,000 600,000
Dividend per share 2.00 7.67

CASE 2: Cumulative, Non-Participating Preference Shares


PREFERENCE ORDINARY TOTAL
Outstanding
PS (300,000 sh - 100,000 sh = 200,000 sh x P20) 4,000,000
OS (800,000 sh - 200,000 sh = 600,000 sh x P10 par) 6,000,000

Dividend 5,000,000
Preference Share (4,000,000 x 10% x 2 yrs.) 800,000 (800,000)
Ordinary Share 4,200,000 (4,200,000)
Total Dividend 800,000 4,200,000 -
Divide by outstanding shares 200,000 600,000
Dividend per share 4.00 7.00

CASE 3: Non-Cumulative; Participating Preference Shares


PREFERENCE ORDINARY TOTAL
Outstanding
PS 300,000 sh - 100,000 sh = 200,000 sh x P20) 4,000,000
OS (800,000 sh - 200,000 sh = 600,000 sh x P10 par) 6,000,000

Dividend 5,000,000
Preference Share (4,000,000 x 10% x 1 yr.) 400,000 (400,000)
Ordinary Share (6,000,000 x 10% x 1 yr) 600,000 (600,000)

Participating
Preference Share (4,000,000/10,000,000x 4,000,000) 1,600,000 (1,600,000)
Ordinary Share (6,000,000/10,000,000 x 4,000,000) 2,400,000 (2,400,000)
Total Dividend 2,000,000 3,000,000
Divide Outstanding shares 200,000 600,000
Dividend per Share 10.00 5.00

CASE 4: Cumulative; Participating Preference Share


PREFERENCE ORDINARY TOTAL
Outstanding
PS 300,000 sh - 100,000 sh = 200,000 sh x P20) 4,000,000
OS (800,000 sh - 200,000 sh = 600,000 sh x P10 par) 6,000,000

Dividend 5,000,000
Preference Share (4,000,000 x 10% x 2 yrs.) 800,000 (800,000)
Ordinary Share (6,000,000 x 10%) 600,000 (600,000)

Participating
Preference Share (4M/10M x 3,600,000) 1,440,000 (1,440,000)
Ordinary Share (6M/10M x 3,600,000) 2,160,000 (2,160,000)
Total Dividend 2,240,000 2,760,000
Divide by Oustanding shares 200,000 600,000
Dividend per Share 11.20 4.60

You might also like