5. Relief Co. outstanding 20,000, P200 par, 10% preference shares and declared P3,600,000 cash dividends to its 160,000, P100 par, ordinary shares. Dividends are in arrears for three years, including the current year. Requirements: Compute for the dividend to be received by each dass of shares assuming the preference shares are: a. Noncumulative and non-participating h Cumulative and non-participating c. Noncumulative and fully participating

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A: Net profit =$1,500,000 Beginning Retained earnings = $3,675,000 shares of common stock issued  = 1…

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A: Retained Earnings - It is surplus income generated by the company, after making payment of dividend…

Q: Item No. 4 is based on the following information: Luningning Corporation sold for cash 400…

A: The share premium is the amount received in excess as compared to the par value of shares.

Q: A firm has outstanding converitlble preferred stock with a $50 par value which is convertible into…

A: Conversion value (C) = $45 Number of common shares for each preferred share (n) = 3   Market price…

Q: Preferred shares, $4.55 non-cumulative,       52,000 shares authorized and issued* $ 3,328,000…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: The following information is provided for Mario Company: Retained earnings, P350,000 Preference…

A: Total contributed capital =  Preference share capital + Premium on ordinary shares + Share Premium…

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A: Equity shares holders fund includes common share capital, paid up capital in excess of par value,…

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A: The dividend is paid to shareholders from the retained earnings. At first, preference shareholders…

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.