TASK 10 You are reviewing a Balance Sheet that includes the following items. 10% Debentures 2,000 @ $1,000 $2,000,000 200,000 @ $5 Ordinary Shares @ $2 $4,000,000 ADDITIONAL INFORMATION: e Net Profit Before Tax $700,000 e = Net Profit After Tax $490,000 e Payout Ratio 30% Dividend Yield 10% e Debentures are the only liability causing an interest expense. REQUIRED: Calculate the following ratios. a) Calculate - Total Ordinary Dividends paid. Preference Shares Dividends = Net icome Change in retained earnings (9% preference shares, 200,000 @ $5) 490,000 (0.09 x 5.00 x 200,000) = 400,000 Total Ordinary Dividends paid = Net profit after tax minus preference shares dividend x Payout ratio = 400,000 x 30% = 120,000 b) Calculate - Ordinary Dividend per share. Number of ordinary shares = 4,000,000 / 2 = 2,000,000 Ordinary dividend per share = 120,000 / 2,000,000 Ordinary dividend per share = 0.006