Compute the amount of dividends that would have been paid

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R. San Pedro Corporation has paid all required preference dividends through Dec. 31 2014. Its outstanding shares consists of 10,000 shares of P125 par value ordinary shares and 4,000 shares of 6%, P125 par value preference shares.

During five successive years, the corporation's dividend declarations were as follows:

2015 - ?85,000

2016 - ?52,500

2017- ?7,500

2018-?15,000

2019-?67,500

Problem 1: Compute the amount of dividends that would have been paid to each class of shares in each of the last five years assuming the preference shares is:

a. Cumulative.

b. Noncumulative.

Reference no: EM132765081

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