Compute for the dividends for preferred shares

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Reference no: EM131622158

The Following information pertains to SBA Company for year-end 2016. Earning before interest and taxes = P3,000,000. Capital structure consists of the following: Debts- 1,000,15%,P5,000value per bond, preferred shares - 12%, 5,000, P1,000par ordinary equity shares- 10,000 shares,P100par Corporate tax rate - 32%. For 2016, 60% of Earnings after interest and taxes will be distributed as dividends. Assume that interest, taxes, dividends are paid annualy. a) Compute for EAIT____ b) Compute for the dividends for preferred shares ; for common shares Preferred Shares= P_____.Common Shares=P_____. c)How much of the EAIT were added to retained earnings account. Additional to retained earnings = P______.

Reference no: EM131622158

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