The shareholders' equity of XYZ Corporation is presented as follows: 10% Preference Share 2,000 shares outstanding P200,000; Ordinary Shares, 5,000 shares outstanding P100,000 Preference share premium P20,000; Ordinary share premium P25,000; Retained Earnings P450,000. If 350 shares of Preference Shares were retired at P125/share, how much will be credited to Cash?

The shareholders' equity of XYZ Corporation is presented as follows: 10% Preference Share 2,000 shares outstanding P200,000; Ordinary Shares, 5,000 shares outstanding P100,000 Preference share premium P20,000; Ordinary share premium P25,000; Retained Earnings P450,000. If 350 shares of Preference Shares were retired at P125/share, how much will be credited to Cash?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter14: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 2STP

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