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    The document describes three types of preference shares: 1) Non-cumulative and non-participating shares pay a 5% annual dividend of $50,000 and have a remaining balance of $1,190,000. Ordinary shares receive $50,000 in dividends, distributed among 20,000 shares for $2.5 per share. 2) Cumulative and non-participating shares pay a 5% annual dividend of $50,000 plus $150,000 in arrears, for a total of $200,000. This leaves a balance of $1,040,000. Ordinary shares again receive $200,000 in dividends, distributed among 20,000 shares for $10

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    The document describes three types of preference shares: 1) Non-cumulative and non-participating shares pay a 5% annual dividend of $50,000 and have a remaining balance of $1,190,000. Ordinary shares receive $50,000 in dividends, distributed among 20,000 shares for $2.5 per share. 2) Cumulative and non-participating shares pay a 5% annual dividend of $50,000 plus $150,000 in arrears, for a total of $200,000. This leaves a balance of $1,040,000. Ordinary shares again receive $200,000 in dividends, distributed among 20,000 shares for $10

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    19 views4 pages

    File

    Uploaded by

    Justin Nikolai Bugarin
    The document describes three types of preference shares: 1) Non-cumulative and non-participating shares pay a 5% annual dividend of $50,000 and have a remaining balance of $1,190,000. Ordinary shares receive $50,000 in dividends, distributed among 20,000 shares for $2.5 per share. 2) Cumulative and non-participating shares pay a 5% annual dividend of $50,000 plus $150,000 in arrears, for a total of $200,000. This leaves a balance of $1,040,000. Ordinary shares again receive $200,000 in dividends, distributed among 20,000 shares for $10

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 4

    NON-CUMULATIVE AND NON-PARTICIPATING

    Preference Share
    Preference Dividends
    Current - P1,000,000 x 5% x 1 year = P50,000 50,000
    Total 50,000
    Balance (1,240,000 - 50,000) P1,190,000

    Ordinary Dividends
    Balance
    As distributed 50,000

    Dividend by issued shares 20,000

    Dividend per share 2.5

    CUMULATIVE AND NON-PARTICIPATING

    Preference Dividends Preference Share

    Arrears - P1,000,000 x 5% x 3 years 150,000


    Current P1,000,000 x 5% x 1 year 50,000

    Total 200,000
    Balance (1,240,000 - 200,000) P 1,040,000

    Ordinary Dividends
    Balance
    As distributed 200,000

    Dividends by issued shares 20,000

    Dividends per share 10

    CUMULATIVE AND FULLY-PARTICIPATING

    Preference Dividends Preference Share

    Arrear - P1,000,000 x 5% x 3 years 150,000


    Current P1,000,000 x 5% x 1 year 50,000

    Total 200,000
    Ordinary Dividends (10,000 x P10)
    As distributed 200,000

    Balance 1,240,000 - 300,000 = 940,000

    Preference shares = 1,000,000 / 1,750,000 537,142.86


    x 940,000

    Ordinary Shares = 750,000 / 1,750,000


    x 940,000

    Grand Total 737,142.86

    Dividends by issued shares 20,000

    Dividends per share 36.86


    Ordinary Shares total

    50,000
    50,000

    1,190,000 1,190,000
    1,190,000 1,240,000

    10,000

    119

    Ordinary Shares Total

    150,000
    50,000

    200,000

    1,040,000 400,000
    1,040,000 1,240,000

    10,000

    104

    Ordinary Shares Total

    150,000
    50,000

    200,000
    100,000 100,000
    100,000 300,000

    537,142.86

    402,857.14 402,857.14

    502,857.14 1,240,000

    10,000

    50.29

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