The following information pertains to TQM company for year-end 2016.

Earnings before interest and taxes = P 3,000,000

Capital structure consists of the following:

Debts 1,000 , 15%, P 5,000 value per bond,

Preferred Shares 12%, 5,000, P1000 par

Ordinary equity shares 10,000 shares , P100 par

Corporate Tax rate 32%

For 2016, 60% of Earnings after interest and taxes will be distributed as dividends.

Assume that interest, taxes, dividends are paid annually.

A. . Compute for the dividends for common shares.

Common Shares= P____

c. How much of the EAIT were added to retained earnings account.

Additional to Retained Earnings= P____