After Payment of All Claims Apart from Payments to Capital

question 14

Multiple Choice

After payment of all claims apart from payments to capital contributors, the liquidator prepared the following statement of shareholders' equity for Train Ltd:
$\begin{array}{llcc} \text { Preference shares \( (20000) \) } &40000 \\ \text { Ordinary shares (100 000) } &300000\\ \text {Accumulated losses } &\underline{(155000) }\\ \text { Total} &185000\\\end{array}$

There is $125 000 cash remaining for distribution and all shares are fully paid.What is the dividend per preference share if preference shareholders rank equally with ordinary shareholders? (Note: Round amounts to nearest cent.)

• A)$6.25
• B)$0.50
• C)$1.04
• D)$9.25

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Definitions:

Air Conditioning System

A mechanism designed for controlling the temperature, humidity, and overall air quality in an enclosed space.

Expansion Valve

Restricts the flow of the refrigerant in an A/C circuit, which lowers its pressure as it exits the valve.

High-Pressure

Refers to a condition or system operating at a pressure significantly above atmospheric pressure, often used in hydraulic and pneumatic applications.

Low-Pressure

Refers to a condition or an area where the pressure is lower than the surrounding atmosphere or in comparison to a specified reference.