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Determine the total amount of dividends that must be declared to meet the dividend goal of the entity.

Determine the total amount of dividends that must be declared to meet the dividend goal of the entity.

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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Determine the total amount of dividends that must be declared to meet the dividend goal of the entity.

R Padilla Company decided to declare a dividend whereby ordinary shareholders shall receive a dividend of P5 per share. The entity reported the following shareholders' equity at year-end: Preference, share capital P100, 10% participating up to 15%, non cumulative, 100,000 shares authorized, 25,000 shares issued 2,500,000 Ordinary share capital, P25 par, 250,000 shares authorized, 200,00 shares issued 5,000,000 Share premium Retained earnings 1,000,000 4,000,000 Determine the total amount of dividends that must be declared to meet the dividend goal of the entity.
Transcribed Image Text:R Padilla Company decided to declare a dividend whereby ordinary shareholders shall receive a dividend of P5 per share. The entity reported the following shareholders' equity at year-end: Preference, share capital P100, 10% participating up to 15%, non cumulative, 100,000 shares authorized, 25,000 shares issued 2,500,000 Ordinary share capital, P25 par, 250,000 shares authorized, 200,00 shares issued 5,000,000 Share premium Retained earnings 1,000,000 4,000,000 Determine the total amount of dividends that must be declared to meet the dividend goal of the entity.
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