Written, Inc. has outstanding 300,000 shares of P2 par ordinary shares and 60,000 shares of no-par...
Written, Inc. has outstanding 300,000 shares of P2 par ordinary shares and 60,000 shares of no-par 8% preference shares with a stated value of P5. The preference shares are cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that P63,000 will be distributed as a dividend in the current year, how much will the preference shareholders receive?
Select one:
a. P63,000.
b. P24,000.
c. P21,000.
d. P48,000
Homework Answers
Preference dividend per year = 60000*5*8% i.e 24000
Unpaid dividend on preference share for the past 2 years = 24000*2 i.e 48000
Dividend for the current year = 24000
Total dividend = 72000
Dividend limited to earnings = 63000
Total dividend to be received by preference shareholder = $63000
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