3.1 Distinguish between: 3.1.1 A participating preference share and a convertible preference share. (2) 3.1.2 Share repurchase and a residual dividend. (2) 3.2 Teddy Ltd has experienced a reasonable trading year. They are deciding whether to pay out R124 000 in accumulated cash in the form of a dividend to shareholders or embark on a share repurchase campaign. Current earnings are R3.60 per share and the share sells for R40