Mac Corporation

Scenario A. Non-Cumulative and Nonparticipating

Solution:
Total declared cash dividends P 260,000
Less: Priority (Preference Shareholders)
200C: 4,000 shares x 100 x 12% 48,000
Dividends available (Ordinary Shareholders) P 212,000
Dividend per share:
Preference: P 48,000 / 4,000 shares = P 12 per share
Ordinary: P 212,000/ 20,000 shares = P 10.6 per share

Scenario B. Non-Cumulative and Fully Participating

Solution:
Total declared cash dividend P 260,000
Less: Priority (Preference Shareholders)
200C: 4,000 shares x 100 x 12% 48,000
Dividends available (both shareholders) P 212,000

Ratio:
Preference: 400,000 40/100 or 40%
Ordinary: 600,000 60/100 or 60%
1,000,000
Dividends available:
Preference: 212,000 x 40% = P 84,800
Ordinary: 212,000 x 60% = P 127,200
Dividends per share:
Preference: (48,000 + 84,800) / 4,000 shares = 132,800/ 4,000 = P 33.2 per share
Ordinary: 127, 200/ 20,000 shares = P 6.36 per share
Scenario C. Cumulative and Non- Participating

Solution:

Total declared cash dividends P 260,000

Less: Priority (Preference Shareholders)

200C: 4,000 shares x 100 x 12% P 48,000

P48,000

P48,000

P 114,00

Dividends Available to (Ordinary Shareholders) = 260,000 – 114,000 = P 116,000

Dividends per share:

Preference: P 144,000 / 4,000 shares = P36 per share

Ordinary: P 116,000 / 20,00 shares = P5.8 per share

Scenario D. Cumulative and Fully participating

Solution:

Total declared cash dividend

Less: Priority (Prefer Shareholders)