MOL Company has P200,000 available to pay dividends. It has 12,000 10% preference shares (of which, 300 shares are in the treasury), P100 par and 50,000 ordinary shares with a par of P40. The preference share is selling for P125 and the ordinary share is selling at P50 per share. Required: Determine the amount of dividends and dividends per share to be paid to each class of share for each of the following independent assumptions. - Preference share capital is non-participating and non-cumulative. - Preference share capital is non-participating and cumulative. Preference dividends are two years in arrears at the beginning of the year. - Preference share capital is fully participating and cumulative. Preference dividends are one year in arrears at the beginning of the year. - Preference share capital is fully participating and is non-cumulative.
MOL Company has P200,000 available to pay dividends. It has 12,000 10% preference shares (of which, 300 shares are in the treasury), P100 par and 50,000 ordinary shares with a par of P40. The
Required: Determine the amount of dividends and dividends per share to be paid to each class of share for each of the following independent assumptions.
- Preference share capital is non-participating and non-cumulative.
- Preference share capital is non-participating and cumulative. Preference dividends are two years in arrears at the beginning of the year.
- Preference share capital is fully participating and cumulative. Preference dividends are one year in arrears at the beginning of the year.
- Preference share capital is fully participating and is non-cumulative.
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