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Dividend per share

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  • 09-12-2012 4:59pm
    #1
    mail
    Registered Users Posts: 134 ✭✭


    hi I have to do Business as part of a course that I am taking. I need to know how to calculate Dividend per Share. I know the formula but cant grasp the technical terms.

    For example :
    Authorised equity 500,000 Ordinary shares of 1.27 euro each
    499,998 Ordinary B shares of 1.27 euro each

    Alllotted called up and fullly paid equity
    2 ordinary shares of 1.27 each
    499,998 Ordinary B shares of 1.27 each
    I would appreciate if anyone could explain this for me as I need to finish off an assignment this week.


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    #2
    ari101
    Registered Users Posts: 2,835 ✭✭✭ari101


    mail wrote: »
    hi I have to do Business as part of a course that I am taking. I need to know how to calculate Dividend per Share. I know the formula but cant grasp the technical terms.

    For example :
    Authorised equity 500,000 Ordinary shares of 1.27 euro each
    499,998 Ordinary B shares of 1.27 euro each

    Alllotted called up and fullly paid equity
    2 ordinary shares of 1.27 each
    499,998 Ordinary B shares of 1.27 each
    I would appreciate if anyone could explain this for me as I need to finish off an assignment this week.

    You need to look at issued shares i.e. allotted called up and paid. Auth shares are not yet sold so no one owns them so no dividend is paid it's just the limits of max shares you have set in your company documents.

    Ordinary shares have dividend rights so these need to be included. The ordinary B assumably have no voting rights, or similar, hence why they are different, but would probably have dividend rights. The names, e.g. A B C, are arbitrary, it's the type; ordinary vs. preference, and the rights as set our in the Memo/Articles which matter.

    Therefore, although I am open to correction, you would need to divide the total ordinary div by the total ordinary issued shares with dividend rights, which I would assume to be 2+499,998=500,000 without any further info on the B shares, but I would state that I'm assuming that they carry dividend rights.


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