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Green Corporation has the following capital structure since the incorporation on January 1. 2016:

Green Corporation has the following capital structure since the incorporation on January 1. 2016:

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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Green Corporation has the following capital structure since the incorporation on January 1. 2016: • 10% Preference shares, P100 par, 1,000 shares issued -P100,000 Ordinary shares, P50 par, 8,000 shares issued 400,000 Although profitable, Green Corporation did not declare dividends in 2016 and 2017. In 2018, its Board of Directors declared a cash dividend of P120,000. Required: A. Allocate the P120,000 cash dividend between preference shares and ordinary shares assuming preference shares are: 1. Non-cumulative and non-participating 2. Cumulative but non-participating 3. Non-cumulative but fully participating 4. Cumulative and fully participating B. Compute the dividend per preference share and dividend per ordinary share under each of the assumption mentioned above.
Transcribed Image Text:Green Corporation has the following capital structure since the incorporation on January 1. 2016: • 10% Preference shares, P100 par, 1,000 shares issued -P100,000 Ordinary shares, P50 par, 8,000 shares issued 400,000 Although profitable, Green Corporation did not declare dividends in 2016 and 2017. In 2018, its Board of Directors declared a cash dividend of P120,000. Required: A. Allocate the P120,000 cash dividend between preference shares and ordinary shares assuming preference shares are: 1. Non-cumulative and non-participating 2. Cumulative but non-participating 3. Non-cumulative but fully participating 4. Cumulative and fully participating B. Compute the dividend per preference share and dividend per ordinary share under each of the assumption mentioned above.
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