Magic Eco Limited (Ltd) is listed on the Johannesburg Stock Exchange (JSE), it has two classes of shares class X and Y class. The shares have the following rights: Holders of class X are entitled to a fixed dividend per share and have the right to participate in any additional dividends declared. Dividends are discretionary. Holders of class Y participate equally with the holders of class X with respect to any additional discretionary dividend only. Both classes of shares participate equally in residual assets on winding up. Additional information 1. Net profit for Magic Eco for the period is R2 500 2. Dividends paid to Class X holders amounted to R 600 3. Dividends paid to holders of Class Y holders amounted to R 500 4. Number of shares outstanding for the period are 100 Class X and 100 Y shares.

Required 1. Determine the nature of the Class Y and Class X shares, give reasons for your thought process. (5 marks)

1. Calculate the Earnings per share for the Ordinary shares. (10 marks)