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Problem 18-13 Roma Company provided the following shareholders' equity at year-end: Preference share capital, P100 par, 100,000 shares Authorized and 80,000 shares issued Ordinary share capital, P50 par, 500,000 shares Authorized and 200,000 share issued 8,000,000 Share premium Retained earnings 10,000,000 2,000,000 5,000,000 The preference dividends are in arrears for two years and the preference rate is 12%. The preference share is cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. Reguired: Compute the maximum amount of dividend to be declared in order to meet the dividend obiective of the board of directors

Problem 18-13 Roma Company provided the following shareholders' equity at year-end: Preference share capital, P100 par, 100,000 shares Authorized and 80,000 shares issued Ordinary share capital, P50 par, 500,000 shares Authorized and 200,000 share issued 8,000,000 Share premium Retained earnings 10,000,000 2,000,000 5,000,000 The preference dividends are in arrears for two years and the preference rate is 12%. The preference share is cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. Reguired: Compute the maximum amount of dividend to be declared in order to meet the dividend obiective of the board of directors

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 12.3APR: Stock transactions for corporate expansion On December 1 of the current year, the following accounts...
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Problem 18-13 Roma Company provided the following shareholders' eguity at year-end: Preference share capital, P100 par, 100,000 shares Authorized and 80,000 shares issued Ordinary share capital, P50 par, 500,000 shares Authorized and 200,000 share issued 8,000,000 Share premium Retained earnings 10,000,000 2,000,000 5,000,000 The preference dividends are in arrears for two years and the preference rate is 12%. The preference share is cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. Reguired: Compute the maximum amount of dividend to be declared in order to meet the dividend objective of the board of directors.
Transcribed Image Text:Problem 18-13 Roma Company provided the following shareholders' eguity at year-end: Preference share capital, P100 par, 100,000 shares Authorized and 80,000 shares issued Ordinary share capital, P50 par, 500,000 shares Authorized and 200,000 share issued 8,000,000 Share premium Retained earnings 10,000,000 2,000,000 5,000,000 The preference dividends are in arrears for two years and the preference rate is 12%. The preference share is cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. Reguired: Compute the maximum amount of dividend to be declared in order to meet the dividend objective of the board of directors.
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