Reference no: EM132892400

Carunungan Corporation has the following data on stock issued and outstanding on December 31, 2015:

10% Preference share, P10 par 300,000

Ordinary share capital, P10 par 200,000

Retained earnings 300,000

Dividends were in arrears for 2 years, excluding the current year. The Board of Directors declared P200,000 cash dividends.

Problem 1: If preferred is cumulative and participating, the total dividend accruing to ordinary is?

a. 56,000

b. 110,000

c. 130,000

d. 144,000

Problem 2: If preferred is cumulative and participating, the total dividend accruing to preferred is?

a. 130,000

b.144,000

c. 56,000

d. 110,000

Problem 3: Preferred is non-cumulative and participating to an additional 5%, the ordinary dividend per share is?

a. 7.75

b. 2.8

c. 1.5

d. 4.8

Problem 4: Preferred is non-cumulative and participating to an additional 5%, The preferred dividend per share is?

a. 7.75

b. 1.5

c. 2.8