a) Authorised share capital is the maximum number of shares that a company is legally permitted to issue to the public, as specified in its memorandum of association or articles of incorporation

Here are the explanations and calculations for the given questions: a) Authorised share capital is the maximum number of shares that a company is legally permitted to issue to the public, as specified in its memorandum of association or articles of incorporation. It represents the upper limit of the company's share capital. b) Issued share capital is the portion of the authorised share capital that has actually been issued and allotted to shareholders. It represents the total nominal value of shares that have been sold or distributed to investors. c) Similarity: Both preference shares and debentures typically offer a fixed rate of return* to their holders (dividends for preference shares, interest for debentures). Difference: Preference shares represent equity (ownership) in the company, while debentures represent debt* (a loan) to the company. Debenture holders are creditors, whereas preference shareholders are owners. d) *i) Total dividend proposed on ordinary shares: Step 1: Calculate the total nominal value of issued ordinary shares. Total nominal value of ordinary shares = Number of issued ordinary shares × Par value per share Total nominal value of ordinary shares = 20,000 shares × S1/share = S20,000 Step 2: Calculate the ordinary dividend based on the proposed rate. Ordinary dividend = Total nominal value of ordinary shares × Dividend rate Ordinary dividend = S20,000 × 8\% = S1,600 The total dividend proposed on ordinary shares is S1,600. *ii) Total dividend payable on preference shares: Step 1: Calculate the total nominal value of issued preference shares. Total nominal value of preference shares = Number of issued preference shares × Par value per share Total nominal value of preference shares = 40,000 shares × S0.25/share = S10,000 Step 2: Calculate the preference dividend based on the fixed rate. Preference dividend = Total nominal value of preference shares × Dividend rate Preference dividend = S10,000 × 7\% = S700 The total dividend payable on preference shares is S700.