4. An entity showed the following data: Share capital, par value P50 5,000,000 Share premium 200,000 Retained Earnings 2,000,000 Market value of share on declaration date 75 Market value of share on distribution date 85 Treat each item independently: c. How much would be the total shareholders’ equity after a 10% share dividend declaration? d. If the entity would declare a 1 for 5 share split, What would be the balance of retained earnings?
4. An entity showed the following data: Share capital, par value P50 5,000,000 Share premium 200,000 Retained Earnings 2,000,000 Market value of share on declaration date 75 Market value of share on distribution date 85 Treat each item independently: c. How much would be the total shareholders’ equity after a 10% share dividend declaration? d. If the entity would declare a 1 for 5 share split, What would be the balance of retained earnings?
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5P
Related questions
Question
4. An entity showed the following data:
Share capital, par value P50 5,000,000
Share premium 200,000
Market value of share on declaration date 75
Market value of share on distribution date 85
Treat each item independently:
c. How much would be the total shareholders’ equity after a 10% share dividend
declaration?
d. If the entity would declare a 1 for 5 share split, What would be the balance of retained
earnings?
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