Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears. - 200,000 ordinary shares, par value P1. On December 31, 2019, the entity declared dividends of P100,000. What was the amount of dividends payable to ordinary share holders?
Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears. - 200,000 ordinary shares, par value P1. On December 31, 2019, the entity declared dividends of P100,000. What was the amount of dividends payable to ordinary share holders?
Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears. - 200,000 ordinary shares, par value P1. On December 31, 2019, the entity declared dividends of P100,000. What was the amount of dividends payable to ordinary share holders?
Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears. - 200,000 ordinary shares, par value P1. On December 31, 2019, the entity declared dividends of P100,000. What was the amount of dividends payable to ordinary share holders?
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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