The board of directors of KALEIDOSCOPE Corporation has declared cash dividends of ₱30,000 to its outstanding shares. The outstanding share capital of KALEIDOSCOPE Corporation consists of 3,000 shares of ₱60 par value, 6% preference share capital and 6,500 shares of ₱15 par value ordinary share capital. Dividends are in arrears for two years. Requirements:
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Problem 1: (Cash Dividends for Two Classes of Shares)
The board of directors of KALEIDOSCOPE Corporation has declared cash dividends of ₱30,000 to its
outstanding shares. The outstanding share capital of KALEIDOSCOPE Corporation consists of 3,000 shares
of ₱60 par value, 6%
Dividends are in arrears for two years.
Requirements:
A. Compute for the total amount of dividend given the individual assumptions allocated for:
1. Preference shares
a. Preference share capital is noncumulative and nonparticipating
b. Preference share capital is noncumulative and participating
c. Preference share capital is cumulative and nonparticipating
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