NMB CORPORATION HAS 5,000,000 ORDINARY SHARES AND 1,000,000 SHARES OF 6% P100 PAR VALUE CUMULATIVE PREFERENCE SHARES. DURING THE RECESSION OF THE PAST TWO YEARS, NMB SUSPENDED ALL DIVIDEND PAYMENTS. THIS YEAR NMB RETURNED TO PROFITABILITY, AND THE BOARD OF DIRECTORS DECLARED A P1 PER SHARE ORDINARY SHARES DIVIDEND TO BE PAID AT THE END OF THE YEAR. HOW MUCH WOULD NMB HAVE TO PAY IN DIVIDENDS THIS YEAR? 5,0000 11,000,000 17,000,000
NMB CORPORATION HAS 5,000,000 ORDINARY SHARES AND 1,000,000 SHARES OF 6% P100 PAR VALUE CUMULATIVE PREFERENCE SHARES. DURING THE RECESSION OF THE PAST TWO YEARS, NMB SUSPENDED ALL DIVIDEND PAYMENTS. THIS YEAR NMB RETURNED TO PROFITABILITY, AND THE BOARD OF DIRECTORS DECLARED A P1 PER SHARE ORDINARY SHARES DIVIDEND TO BE PAID AT THE END OF THE YEAR. HOW MUCH WOULD NMB HAVE TO PAY IN DIVIDENDS THIS YEAR? 5,0000 11,000,000 17,000,000
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 4P
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NMB CORPORATION HAS 5,000,000 ORDINARY SHARES AND 1,000,000 SHARES OF 6% P100 PAR VALUE CUMULATIVE PREFERENCE SHARES. DURING THE RECESSION OF THE PAST TWO YEARS, NMB SUSPENDED ALL DIVIDEND PAYMENTS. THIS YEAR NMB RETURNED TO PROFITABILITY, AND THE BOARD OF DIRECTORS DECLARED A P1 PER SHARE ORDINARY SHARES DIVIDEND TO BE PAID AT THE END OF THE YEAR. HOW MUCH WOULD NMB HAVE TO PAY IN DIVIDENDS THIS YEAR?
5,0000
11,000,000
17,000,000
23,000,000
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