Arrange following in a sequence to determine the residue available for Equity Shareholders of a company.

A. Profit after Interest before Tax and Dividend

B. Preference Dividend paid

C. Profit after Interest and Tax before Dividend

D. Tax paid

E. Profit after interest, Tax and Dividend

Choose the correct answer from the options given below :

A, D, C, B, E

The correct answer is option (3) : A, D, C, B, E.

A. Profit after Interest before Tax and Dividend: This represents the starting point, showing the initial profit earned by the company  after deducting all operating and non operating expenses.

D. Tax paid: Tax is deducted from the profit, reducing the available amount.

C. Profit after Interest and Tax before Dividend: After tax payment, this amount reflects the profit remaining before distributing dividends.

B. Preference Dividend paid: Preference shareholders receive their fixed dividend before any distribution to equity shareholders.

E. Profit after interest, Tax and Dividend: This final amount represents the residue available for distribution to equity shareholders after all prior claims are settled.