Revision Question 5 a. Following information relates to the operations of SF Limited. Profit for 31 December 2019 was $1.500.000 and 31 December 2020 was $1,800.000. The company distributed preference dividends of $50,000, and ordinary dividends of $600,000 for 31 December 2019 and company distributed preference dividends of $50,000, and ordinary dividends of $800,000 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 $8.50 per share as at 31 December 2020. Last year, ordinary shares were sold for $8.00 per share Required: i. Calculate earnings per share (EPS) for the year ended 31 December 2019 and 31 December 2020. ii. Calculate price-earnings ratio earnings (P/E ratio) per share for the year ended 31 December 2019 and 31 December 2020. 111. Interpret earning per share (EPS) and price-earnings ratio earnings (P/E ratio) for both years. b. Explain the difference between issuance of share and issuance of debenture