Problem 18-13 Roma Company provided the following shareholders' equity at year-end: Preference share capital, P100 par, 100,000 shares Authorized and 80,000 shares issued Ordinary share capital, P50 par, 500,000 shares Authorized and 200,000 share issued 8,000,000 Share premium Retained earnings 10,000,000 2,000,000 5,000,000 The preference dividends are in arrears for two years and the preference rate is 12%. The preference share is cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. Reguired: Compute the maximum amount of dividend to be declared in order to meet the dividend obiective of the board of directors

Problem 18-13 Roma Company provided the following shareholders' equity at year-end: Preference share capital, P100 par, 100,000 shares Authorized and 80,000 shares issued Ordinary share capital, P50 par, 500,000 shares Authorized and 200,000 share issued 8,000,000 Share premium Retained earnings 10,000,000 2,000,000 5,000,000 The preference dividends are in arrears for two years and the preference rate is 12%. The preference share is cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. Reguired: Compute the maximum amount of dividend to be declared in order to meet the dividend obiective of the board of directors

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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