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What percentage should be declared as share dividend

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Problem 1: The BOD of Trysa Inc. whose P50 par value of ordinary shares (which is currently selling at P60 per share) have decided to issue a share dividend. The selling price is not expected to be affected by the share dividend. Trysa Inc. has an authorization for 1,000,000 ordinary shares, had issued 500,000 shares of which 100,000 shares are now held as treasury shares. In order to capitalize P2,400,00 of the Retained Earnings balance, what percentage should be declared as share dividend by the BOD?

a. 10% b. 8% c. 6% d. 4%

Reference no: EM132718767

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