BC Company declared a 10% share dividend. During declaration, the market price of the entity’s 30,000 outstanding shares was P90 per share. Par value is P20. The share dividend was distributed on July 1 when the market price of the dividend was P100 per share. How much share premium will be recognized?

BC Company declared a 10% share dividend. During declaration, the market price of the entity’s 30,000 outstanding shares was P90 per share. Par value is P20. The share dividend was distributed on July 1 when the market price of the dividend was P100 per share. How much share premium will be recognized?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 5P

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