AUSTERE Co. owns 20% of SEVERE, Inc.’s ordinary shares. SEVERE also has outstanding redeemable preference shares with dividend rate of 6% and aggregate par value of ₱8,000,000. During the year, SEVERE reported profit of ₱4,000,000 and declared ₱150,000 cash dividend to preference shareholders. How much is AUSTERE’s share in the profit of SEVERE? 704,000 800,000 512,000 770,000
AUSTERE Co. owns 20% of SEVERE, Inc.’s ordinary shares. SEVERE also has outstanding redeemable preference shares with dividend rate of 6% and aggregate par value of ₱8,000,000. During the year, SEVERE reported profit of ₱4,000,000 and declared ₱150,000 cash dividend to preference shareholders. How much is AUSTERE’s share in the profit of SEVERE? 704,000 800,000 512,000 770,000
Chapter3: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 6BCRQ
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- AUSTERE Co. owns 20% of SEVERE, Inc.’s ordinary shares. SEVERE also has outstanding redeemable
preference shares withdividend rate of 6% and aggregate par value of ₱8,000,000. During the year, SEVERE reported profit of ₱4,000,000 and declared ₱150,000 cash dividend to preference shareholders. How much is AUSTERE’s share in the profit of SEVERE?- 704,000
- 800,000
- 512,000
- 770,000
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