ABC Company disclosed the following balance sheet (Equity part) as at 31st Dec 2019 12%

Preference Sharee Capital @ $ 100 each $100,000

Ordinary Share Capital @$ 100 each $400,000

Share Premium $ 40,000

Retained Earning $ 300,000

Notes During the year company earned $ 150,000 which have been included in retained earning.

Required: Calculate DPS (Dividend) per share in the following scenarios:

DPS = Distributable Profit / # of Shares outstanding

1.What is the maximum DPS Co can Pay?

2.Suppose Directors decided to allocate $ 100,000 as sinking fund, how much DPS Co can pay?

3.Suppose the firm has $ 60,000 in cash, What is the max DPD Co can pay?

4.If the director decided to pay from earnings of 2019, what will be max DPS?