The Company has the same capital structure (except for retained earnings) for the past five year, see details below:
6% Preference Share Capital, 80,000 shares issued and outstanding, P 50 par		4,000,000
Ordinary Share Capital, 200,000 shares issued and outstanding, P 30 par		6,000,000
Retained Earnings		5,000,000
No dividends were paid prior to 2020 for two years. On December 10, 2020, the Company declared P 1,000,000 as cash dividends to shareholders of record of December 21, 2020, payable on January 5, 2021. Assuming Preference share capital is NON-CUMULATIVE and PARTICIPATING UP TO ADDITIONAL 5%, how much is the dividend allocated to PS? Assuming Preference share capital is NON-CUMULATIVE and PARTICIPATING UP TO ADDITIONAL 5%, how much is the dividend allocated to OS?

Answer rating: 100% (QA)

Participative and Noncumulative preferred stock The preferred stock refers to the class of s... View the full answer