User Account

All Pages

Compute for the dividends for preferred shares

Assignment Help Financial Accounting
Reference no: EM132490033

The following information pertains to SBA Company for year-end 2016.

Earnings before interest and taxes = P 3,000,000

Capital structure consists of the following:

Debts - 1,000 , 15%, P 5,000 value per bond,

Preferred Shares - 12%, 5,000, P1000 par

Ordinary equity shares - 10,000 shares , P100 par

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 annually.

Question a. Compute for the EAIT.

Question b. Compute for the dividends for preferred shares; for common shares.

Question c. How much of the EAIT were added to retained earnings account.

Reference no: EM132490033

Questions Cloud

Would be considered a related party transaction under ifrs : To sell their one site where their cost exceed the revenue to the second company, would it be considered a related party transaction under IFRS?
Medical interventions and reactive medical interventions : The United States health care system is often criticized for being too "reactive", and insufficiently "proactive".
Compute the income tax expense for each method : Use a vertical model to show the 2018 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average.
Preferred portal of entry of clostridium perfringens : What is their preferred portal of entry of Clostridium perfringens? How do Clostridium perfringens gain access through that preferred portal of entry.
Compute for the dividends for preferred shares : Compute for the dividends for preferred shares; for common shares. How much of the EAIT were added to retained earnings account.
What are some ways that coliforms can contaminate food : The USDA recommends that hamburgers are cooked to an internal temperature of 160°F, but a steak can be served rare at 145°F.
What is the projects discounted payback : The company's WACC is 8.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.)
Most common causes of foodborne illness : Escherichia coli is one of the most common causes of foodborne illness, yet it is also a common microorganism found within the human gut.
Disruptions in bacterial communities : How does the gut microbiome contribute to disease states due to disruptions in bacterial communities?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd