Reference no: EM133095277
Question - The directors of Lora Company wish to declare a dividend whereby ordinary shareholders are to receive a total per share dividends of P4. The entity provided the following shareholders' equity on December 31, 2020:
Preference share capital, P100 par, 7% participating and noncumulative, 100,000 shares authorized, 25,000 shares issued 2,500,000
Ordinary share capital, P25 par, 250,000 shares authorized and outstanding 6,250,000
Share premium 1,250,000
Retained Earnings 5,000,000
Required - Compute the total amount of dividend that must be declared to meet the per share goal of the board of directors.
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