The equity section of Manda Corp. is shown below: 8% preferred stock, P100 par value, authorized and issued 2,000 shares P200,000 Common stock, P5 par value, authorized 100,000 shares, issued 33,000 shares (of which 3,000 shares are held in the Treasury) 165,000 Retained Earnings 200,000 Sub-total P 565,000 Less: Treasury shares (3,000 shares common) 15,000 Total Stockholders’ equity P550,000 ======= Answer the following questions: (show computations, if any) 1. How many shares of preferred stocks can the company still issue? 2. What is the total peso amount of the annual dividend requirement on preferred stock? 3. How many shares of common stocks are outstanding? 4. How many common shares are unissued? 5. How many common shares were re-acquired by the company? 6. What is the original issue price of preferred share as stated in the Articles of incorporation? 7. If cash dividend of P20,000 is declared, how much will be paid to preferred stockholders if preferred holders are non-cumulative and non-participating? 8. How much dividends will be given to common stockholders? 9. Why is preferred stocks more expensive than common stocks? Problem 4: DividendsThe equity section of Manda Corp. is shown below:8% preferred stock, P100 par value, authorized and issued 2,000 shares P200,000 Commonstock, P5 par value, authorized 100,000 shares, issued 33,000shares (of which 3,000 shares are held in the Treasury) 165,000 Retained Earnings200,000 Sub-total P 565,000 Less: Treasury shares (3,000 shares common) 15.000 TotalStockholders' equity P550,000Answer the following questions: (show computations, if any)1. How many shares of preferred stocks can the company still issue?2. What is the total peso amount of the annual dividend requirement on preferred stock?3. How many shares of common stocks are outstanding?4. How many common shares are unissued?5. How many common shares were re-acquired by the company?6. What is the original issue price of preferred share as stated in the Articles of incorporation? 7. If cashdividend of P20,000 is declared, how much will be paid to preferred stockholders if preferred holders arenon-cumulative and non-participating?8. How much dividends will be given to common stockholders?9. Why is preferred stocks more expensive than common stocks?Page 2 of 3

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Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

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The equity section of Manda Corp. is shown below: 8% preferred stock, P100 par value, authorized and issued 2,000 shares P200,000 Common stock, P5 par value, authorized 100,000 shares, issued 33,000 shares (of which 3,000 shares are held in the Treasury) 165,000 Retained Earnings 200,000 Sub-total P 565,000 Less: Treasury shares (3,000 shares common) 15,000 Total Stockholders’ equity P550,000 ======= Answer the following questions: (show computations, if any) 1. How many shares of preferred stocks can the company still issue? 2. What is the total peso amount of the annual dividend requirement on preferred stock? 3. How many shares of common stocks are outstanding? 4. How many common shares are unissued? 5. How many common shares were re-acquired by the company? 6. What is the original issue price of preferred share as stated in the Articles of incorporation? 7. If cash dividend of P20,000 is declared, how much will be paid to preferred stockholders if preferred holders are non-cumulative and non-participating? 8. How much dividends will be given to common stockholders? 9. Why is preferred stocks more expensive than common stocks?

Problem 4: Dividends
The equity section of Manda Corp. is shown below:
8% preferred stock, P100 par value, authorized and issued 2,000 shares P200,000 Common
stock, P5 par value, authorized 100,000 shares, issued 33,000
shares (of which 3,000 shares are held in the Treasury) 165,000 Retained Earnings
200,000 Sub-total P 565,000 Less: Treasury shares (3,000 shares common) 15.000 Total
Stockholders' equity P550,000
Answer the following questions: (show computations, if any)
1. How many shares of preferred stocks can the company still issue?
2. What is the total peso amount of the annual dividend requirement on preferred stock?
3. How many shares of common stocks are outstanding?
4. How many common shares are unissued?
5. How many common shares were re-acquired by the company?
6. What is the original issue price of preferred share as stated in the Articles of incorporation? 7. If cash
dividend of P20,000 is declared, how much will be paid to preferred stockholders if preferred holders are
non-cumulative and non-participating?
8. How much dividends will be given to common stockholders?
9. Why is preferred stocks more expensive than common stocks?
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