Question 5 (25 marks) 4. Following information relates to the operations of SAFE NOW Berhad. Profit for 31 December 2019 was RM 1,500,000 and 31 December 2020 was RM1,800,000 The company distributed preference dividends of RM50,000, and ordinary dividends of RM600,000 for 31 December 2019 and company distributed preference dividends of RM50,000, and ordinary dividends of RM800,000 for 31 December 2020. Over the 2 years, company had an issued ordinary share were 2,000,000 shares. Ordinary shares are currently selling for RM8.50 per share as at 31 December 2020. Last year, ordinary shares were sold for RM8.00 per share Required: i Calculate earnings per share (EPS) for the year ended 31 December 2019 and 31 December 2020. (2 marks) ii. Calculate price-earnings ratio earnings (PE ratio) per share for the year ended 31 December 2019 and 31 December 2020 (2 marks) in. Interpret earning per share (EPS) and price-carnings ratio earnings (P/E ratio) for both years. (4 marks) b. Briefly explain difference between issuance of share and issuance of debenture with relevant illustration (8 marks) c. Following extract of trial balance of Oola Berhad as at 31 December 2020: 10%, Preference Share @ RM2.00 each fully paid RM1,000,000 Ordinary Shares @ RM1.50 fully paid RM3,000,000 Additional information: Company paid interim dividend of RM10,000 on 30 June 2020 At the end of financial year, company declared final dividend. Ordinary shareholders are entitled for final dividend of RM0.08 per ordinary ordinary shares held. Company have also decided that final dividend is additional to interim dividend. Required: i. Show the record for dividends above. (4 marks) ii. Explain the difference between interim dividend and final dividend