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    Fafiesam's Avatar
    Fafiesam Posts: 1, Reputation: 1
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    #1

    Oct 24, 2017, 09:37 AM
    Valuation of participating preference shares
    10000 16% participation preference shares of $1 each =$10000 ( each participating preference share partcipate equally in ordinary dividend per share once the ordinary shares exceed 20c per share this right will last for 3 years).


    At 1 March 2010, the dividend yield for participating preference shares was 13%. It was envisaged that @ 28 February 2011 ordinary dividends will exceed 20c per share cut off by $11,000 in total and this situation was expected to last for 3 years. Preference dividends are also paid out at the same date.


    Calculation of value of one participating preference share @ 28 February 2010
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Nov 17, 2017, 04:11 AM
    use a calculation of the present value of the future earnings

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