If you're not given a percentage (like a dividend yield or payout ratio), you can still calculate
the ordinary share dividend using a few different methods, depending on what information
you do have. Here are the most common approaches:
1. Using Dividends Per Share (DPS)
If the company declares a specific amount per share:
Dividend = DPS × Number of Shares You Own
For example, if the company pays $0.50 per share and you own 200 shares:
Dividend = 0.50 × 200 = $100
2. Using Financial Statements
If you have access to the company’s financials:
Total Dividends = Net Income – Change in Retained Earnings
Then:
Dividend Per Share = Total Dividends ÷ Number of Outstanding Shares
This method is useful when the dividend isn’t directly stated but you can see how much profit
was retained versus distributed.
3. From Cash Flow Statement
Sometimes, dividends paid are listed directly under financing activities in the cash flow
statement. You can divide that total by the number of shares to get the per-share amount.
Let me know what info you have—like net income, retained earnings, or number of shares—
and I can walk you through a real example.
Debenture interest is the fixed return paid by a company to its debenture holders for
borrowing their money. It’s calculated using a simple formula:
Interest = Principal × Rate × Time
Where:



Principal is the face value of the debenture
Rate is the annual interest rate (as a decimal)
Time is the period the interest is calculated for (in years)
Example:
If a company issues a debenture of $10,000 at 5% interest for 2 years:
Interest = 10,000 × 0.05 × 2 = $1,000
This interest is usually paid semi-annually or annually, depending on the terms of the
debenture agreement.
Want to try a real example with your own numbers? I can help you calculate it.
Let’s break this down step by step using the figures you provided:
1. Preference Share Dividend
Preference shares are entitled to a fixed dividend of 8% on their par value.



Issued preference shares = 200,000
Par value per share = $1
Dividend rate = 8%
Calculation:
[ \text{Dividend} = 200,000 \times 1 \times 8% = $16,000 ]
2. Ordinary Share Dividend
You didn’t specify a dividend rate or amount for ordinary shares, so we can’t calculate this
directly without knowing either:


The dividend per share, or
The total amount declared for ordinary dividends.
If you have either of those, I can plug it in and calculate the total dividend.
3. Debenture Interest
Debentures pay 10% interest on their face value.



Issued debentures = 300,000
Face value per debenture = $0.50
Interest rate = 10%
Calculation:
[ \text{Interest} = 300,000 \times 0.50 \times 10% = $15,000 ]
So far, we’ve got:



Preference dividend = $16,000
Debenture interest = $15,000
Ordinary dividend = Need more info to calculate
If you can tell me how much dividend was declared for ordinary shareholders (either per
share or total), I’ll finish that part too!