12. ABC Co. reported the following shareholders' equity at year end: 7% Preference share, 25,000 shares Ordinary share capital, P25 par P2,500,000 6,250,000 1,250,000 5,000,000 Share Premium Retained Earnings The directors of ABC Co. want to declare a dividend where ordinary shareholders will receive P4/share dividend. IF the. preference shares are participating up to 10%, what is the total dividends that must be declared to meet the per share goal?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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a. P1,000,000

b. P1,175,000

c. P1,250,000

d. P1,700,000

e. answer not given

12. ABC Co. reported the following shareholders' equity at year end:
7% Preference share, 25,000 shares
Ordinary share capital, P25 par
P2,500,000
6,250,000
Share Premium
1,250,000
Retained Earnings
5,000,000
The directors of ABC Co. want to declare a dividend where
ordinary shareholders will receive P4/share dividend. IF the.
preference shares are participating up to 10%, what is the total
dividends that must be declared to meet the per share goal?
Transcribed Image Text:12. ABC Co. reported the following shareholders' equity at year end: 7% Preference share, 25,000 shares Ordinary share capital, P25 par P2,500,000 6,250,000 Share Premium 1,250,000 Retained Earnings 5,000,000 The directors of ABC Co. want to declare a dividend where ordinary shareholders will receive P4/share dividend. IF the. preference shares are participating up to 10%, what is the total dividends that must be declared to meet the per share goal?
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