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PART-F Portus Limited's contributed share capital as of 1st January 2020 was $400,000, with 400,000 shares on issue. On 31st December 2020, a 10% share
PART-F Portus Limited's contributed share capital as of 1st January 2020 was $400,000, with 400,000 shares on issue. On 31st December 2020, a 10% share dividend was declared when the estimated price per share was $4, and the shares were distributed on the day. (a) What is the total value of Portus Limited's contributed share capital as at 31st December 2020 after the share dividend transaction? (b) If instead a two for one share split was declared; and the additional shares were distributed on 31st December 2020, what would be the total value of Portus Limited's contributed share capital as at 31st December 2020 after the share split transaction? (c) Companies frequently issue both preference shares and ordinary shares. What are the major differences in the rights of shareholders between these two classes of shares
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