Question
Andam Corporation has outstanding 60,000 shares of 5% preference shares with a PHP50 par value and 300,000 shares of PHP30 par ordinary shares. During the
Andam Corporation has outstanding 60,000 shares of 5% preference shares with a PHP50 par value and 300,000 shares of PHP30 par ordinary shares. During the current year, the company declared and paid a total cash dividend of PHP900,000.
Required: For each of the following independent cases, compute the total dividends to be received by each class of stock. 1. The preference share is non-cumulative and non-participating. 2. The preference share is cumulative and non-participating with one-year dividends in arrears. 3. The preference share is non-cumulative and participating. 4. The preference share is cumulative and participating with no dividends in arrears. 5. The preference share is cumulative and participating with three years dividends in arrears.
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