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7. The directors of Pete Corporation, whose P50 par value ordinary share is currently selling at P70 per share, have decided to declare a share dividend. Pete has an authorization for 250,000 ordinary shares, has issued 100.000 shares of which 10,000 shares are now held as treasury, and desires to capitalize P945,000 of the Retained Earnings balance. To accomplish this, the percentage of share dividend that the directors should declare is a. 18.9% O b. 15% O c. 12% O d. 9%

7. The directors of Pete Corporation, whose P50 par value ordinary share is currently selling at P70 per share, have decided to declare a share dividend. Pete has an authorization for 250,000 ordinary shares, has issued 100.000 shares of which 10,000 shares are now held as treasury, and desires to capitalize P945,000 of the Retained Earnings balance. To accomplish this, the percentage of share dividend that the directors should declare is a. 18.9% O b. 15% O c. 12% O d. 9%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7. The directors of Pete Corporation, whose P50 par value ordinary share is currently selling at P70 per share, have decided to declare a share dividend. Pete has an authorization for 250,000 ordinary shares, has issued 100,000 shares of which 10,000 shares are now held as treasury, and desires to capitalize P945,000 of the Retained Earnings balance. To accomplish this, the percentage of share dividend that the directors should declare is a. 18.9% O b. 15% c. 12% O d. 9%
Transcribed Image Text:7. The directors of Pete Corporation, whose P50 par value ordinary share is currently selling at P70 per share, have decided to declare a share dividend. Pete has an authorization for 250,000 ordinary shares, has issued 100,000 shares of which 10,000 shares are now held as treasury, and desires to capitalize P945,000 of the Retained Earnings balance. To accomplish this, the percentage of share dividend that the directors should declare is a. 18.9% O b. 15% c. 12% O d. 9%
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