SCUM REFUSE Co. is contemplating on declaring cash dividends to its preference and ordinary shareholders out of its profits in 20x3. Dividends are in arrears for three years. SCUM's shareholders' equity immediately before dividend declaration is as follows: 10% Preference share capital, P800 P8,000,000 par Ordinary share capital, P400 par 32,000,000 Retained earnings 20,000,000 Total shareholders' equity P60,000,000 If SCUM would like to pay dividends of P56 per share to ordinary shareholders, how much total dividend should be declared?

SCUM REFUSE Co. is contemplating on declaring cash dividends to its preference and ordinary shareholders out of its profits in 20x3. Dividends are in arrears for three years. SCUM's shareholders' equity immediately before dividend declaration is as follows: 10% Preference share capital, P800 P8,000,000 par Ordinary share capital, P400 par 32,000,000 Retained earnings 20,000,000 Total shareholders' equity P60,000,000 If SCUM would like to pay dividends of P56 per share to ordinary shareholders, how much total dividend should be declared?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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