Maga Corp.'s shareholders' equity at December 31, 20x1, comprised the following: 6% cumulative preference share, ₱100 par; liquidating value ₱110 per share; authorized, issued, and outstanding 50,000 shares P5,000,000 Ordinary share, ₱5 par; 1,000,000 shares authorized; issued and outstanding 400,000 shares 2,000,000 Retained earnings 1,000,000 Dividends on preferred stock have been paid through 20x0 but have not been declared for 20x1. At December 31, 20x1, Maga's book value per ordinary share was _______________
Dividend Policy
A dividend is a part of the profit paid to the shareholder in an organization. The management of the organization has the right to decide the policy for giving a dividend from the earnings to the shareholder. However, an organization is not in the obligation to declare a dividend for the investor. Dividend policy differs from organization to organization. As the management has the only authority to decide dividend rate, dividend amount, and time of dividend payout by considering all other elements that create an impact on the payment of a dividend.
Stocks And Dividends
Stock or equities are generally sold and bought in the Stock Exchange or which is popularly known as the stock market. Stocks are issued in the Stock Exchange for the sole purpose of raising funds for the Corporation or the company itself. Now since an individual has purchased a portion of the Corporation or company, he or she may claim to be a part of the earnings or profit of the company.
Maga Corp.'s shareholders' equity at December 31, 20x1, comprised the following:
6% cumulative
per share; authorized, issued, and outstanding 50,000 shares
P5,000,000
Ordinary share, ₱5 par; 1,000,000 shares authorized; issued
and outstanding 400,000 shares
2,000,000
Dividends on preferred stock have been paid through 20x0 but have not been declared for 20x1.
At December 31, 20x1, Maga's book value per ordinary share was _______________
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