Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022, respectively. The corporation has not paid any other dividends since its organization on January 1, 2021. The outstanding shares are 50,000, 12% preference shares, par P100 and 80,000 ordinary shares, par P50. The company has 20,000 ordinary shares in the treasury reacquired at 60 per share. If preference shares are non-cumulative but participating, how much cash dividends shall the ordinary shareholders will receive in 2022? Group of answer choices a. 600,000 b. 640,000 c. 1,000,000 d. 360,000
Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022, respectively. The corporation has not paid any other dividends since its organization on January 1, 2021. The outstanding shares are 50,000, 12% preference shares, par P100 and 80,000 ordinary shares, par P50. The company has 20,000 ordinary shares in the treasury reacquired at 60 per share. If preference shares are non-cumulative but participating, how much cash dividends shall the ordinary shareholders will receive in 2022? Group of answer choices a. 600,000 b. 640,000 c. 1,000,000 d. 360,000
Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022, respectively. The corporation has not paid any other dividends since its organization on January 1, 2021. The outstanding shares are 50,000, 12% preference shares, par P100 and 80,000 ordinary shares, par P50. The company has 20,000 ordinary shares in the treasury reacquired at 60 per share. If preference shares are non-cumulative but participating, how much cash dividends shall the ordinary shareholders will receive in 2022? Group of answer choices a. 600,000 b. 640,000 c. 1,000,000 d. 360,000
Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022, respectively. The corporation has not paid any other dividends since its organization on January 1, 2021. The outstanding shares are 50,000, 12% preference shares, par P100 and 80,000 ordinary shares, par P50. The company has 20,000 ordinary shares in the treasury reacquired at 60 per share. If preference shares are non-cumulative but participating, how much cash dividends shall the ordinary shareholders will receive in 2022?
Group of answer choices
a. 600,000
b. 640,000
c. 1,000,000
d. 360,000
Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
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