Determine the amount of the dividends

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Question - J. Chua Corp. plans to declare and distribute a dividend in December 2016. There are 20,000 shares of 7% preference shares, par value P50, and 200,000 outstanding ordinary shares, P3 par value. No dividend was paid in the previous year (2015).

Determine the following: (1) amount of the dividends that should be paid to the preference and ordinary shareholders, and (2) dividend per share, if the total amount that the board of directors has specified for dividends in 2016 is PhP168,000.

a. the preference share is non-cumulative and non-participating.

b. the preference share is cumulative and non-participating.

c. the preference share is non-cumulative and participating.

d. the preference share is cumulative and participating.

Reference no: EM132940510

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