Problem Solving. Type your final answer in the space provided The following information pertains to SBA Company for year-end 2016. Earnings before interest and taxes = P 3,000,000 Capital structure consists of the following: Debts 1,000 , 15%, P 5,000 value per bond, Preferred Shares 12%, 5,000, P1000 par Ordinary equity shares 10,000 shares , P100 par Corporate Tax rate 32% For 2016, 60% of Earnings after interest and taxes will be distributed as dividends . Assume that interest, taxes, dividends are paid annually. a. Compute for the EAIT. EAIT= PAnswer

b. Compute for the dividends for preferred shares; for common shares. Preferred Shares= PAnswer

Common Shares= PAnswer

c. How much of the EAIT were added to retained earnings account. Additional to Retained Earnings= PAnswer