PROBLEM 1.

Gaz Company paid cash dividends totalling P 150,000 in 20x0 and P 75,000 in 20x1. In 20x2, Gaz intends to pay cash dividends of P 800,000.

Requirements: Compute the amount of cash dividends per share to be received by ordinary shareholders in 20x2 under each of the following assumptions. Treat each case independently. There were no dividends in arrears as of January 1, 20x0.

a.25,000 shares of ordinary; 100,000 shares of 6%, P 50 par cumulative preference

b.25,000 shares of ordinary; 50,000 shares of 6%, P 50 par noncumulative preference

c.25,000 shares of ordinary; 70,000 shares of 6%, P 100 par cumulative preference

PROBLEM 2.

During 20x2, the following transactions related to the capital share of the ABC Corp occurred:

lil Jan 7 Declared a P .75 cash dividends on 150,000 shares of preference shares. Feb 7 Paid dividends on preference shares March 4 Declared a P.50 cash dividend on 200,000 ordinary shares with P 20 par value. March 18 Paid dividends on ordinary shares June 30 Split ordinary shares 4 for 1. July 9 Purchased 12,000 shares of ABC Corp' own ordinary shares at P 32 per share; acquisition recorded at cost Sept 10 Declared a cash dividend of P .40 per share on ordinary shares outstanding Sept 18 Paid dividends on ordinary shares