If the preference shares are cumulative and fully participating, how much is the dividends to be allocated to ordinary shareholders?2.If the preference shares of OTSO CORP are cumulative and participating only up to 15%, how much is the dividends to be allocated to ordinary shareholders? Use the following information in answering the next item(s):OTSO CORP. declared P1,500,000 cash dividends to its preference and ordinaryshareholders out of its unappropriated retained earnings in 2018. No dividends havebeen declared since 2016. OTSO's shareholders' equity before the dividend declarationis as follows:10% Preference share capital (P300 par)Ordinary share capital (150 par)Retained earningsOrdinary share premiumP3,000,0001,500,0004,000,000200,000

Formula: Dividends to common share holders = Total dividends - preferred dividends

If the preference shares are cumulative and fully participating, how much is the dividends to be allocated to ordinary shareholders? 2.If the preference shares of OTSO CORP are cumulative and participating only up to 15%, how much is the dividends to be allocated to ordinary shareholders?

If the preference shares are cumulative and fully participating, how much is the dividends to be allocated to ordinary shareholders? 2.If the preference shares of OTSO CORP are cumulative and participating only up to 15%, how much is the dividends to be allocated to ordinary shareholders?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 5P

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