Reference no: EM132981872

Question - Captain Marvel Company declared P7,200,000 cash dividends to its preference and ordinary shareholders out of its profit in 2023. No dividends have been, declared since 2021. The shareholders' equity immediately before dividend declaration are:

10% Preference share capital, P800 par P 8,000,000

Ordinary share capital, P400 par 32,000,000

Retained earnings 20,000,000

Total shareholders' equity 60,000,000

How much is the dividend to ordinary shareholders if the preference shares are noncumulative?

A. 7,200,000 B. 5,080,000 C. 6,400,000 D. 6,000,000

How much is the dividend to ordinary shareholders if the preference shares are cumulative?

A. 2,400,000 B. 4,800,000 C. 5,600,000 D. 6,400,000

How much is the dividend to ordinary shareholders if the preference shares are noncumulative and fully participating?

A. 7,560,000 B. 6,400,000 C. 5,120,000 D. 5,760,000

How much is the dividend to ordinary shareholders if the preference shares are cumulative and fully participating?

A. 4,480,000 B. 5,1250,000 C. 5,760,000 D. 6,400,000

The dividend to ordinary shareholders if the preference shares are cumulative and participating up to 16% is

A. 5,120,000 B. 4,480,000 C. 5,480,000 D. 4,320,000