QUESTION 1 A company has the following shares in issue throughout 2020: 12 000 ordinary shares, and 13 000 non-redeemable, 9% discretionary, participating preference shares (at R2 each). The company earns a profit after tax of R125000. The preference shares participate to the extent of 1:4 of the dividends declared to ordinary shareholders. The total ordinary dividend declared for 2020 was R6 000. The company declared the full 2020 dividends owing to the preference shareholders. Required: Calculate the following: 1.1 Earnings per ordinary share 1.2 Earnings per participating preference share