QUESTION TWO

$[20]$

$2\mathrm{.}1$ Distinguish between a participating preference share and a convertible preference share.

$2\mathrm{.}2$ Fastspeed Couriers has experienced one of their toughest years yet. They are deciding whether to pay out R$80000$ in accumulated cash in the form of an extra dividend to shareholders or embark on a share repurchase campaign. Current profits are R$3\mathrm{.}40$ per share and the share sells for R$36.$ Their abbreviated balance sheet before paying out the dividend is as follows:

$\backslash$table$[[$Equity$,310000,$Bank$/$cash$,100000],[$Debt$,{70000}_{?},$other assets,${280000}_{?}$