PROBLEM 4 Divina Company reported the following capital balances: Share capital, 20,000 shares, P150 par P 3,000,000 Share premium 200,000 Retained earnings 1,500,000 Divina is considering changing...

Divina Company reported the following capital balances:
Share capital, 20,000 shares, P150 par P 3,000,000
Share premium 200,000
Retained earnings 1,500,000
Divina is considering changing its capital structure through any of the following means:
A. Recapitalization is effected, each shareholder receiving 2 shares of new no-par with a stated value of P50 for each share owned.
B. A stock split is effected, each shareholder receiving 5 shares, par value P30, for each share owned.
C. A recapitalization is effected, each shareholder receiving 1 share of new P100 par value of each share owned.
D. Shareholders donate 10% of their shares to the company and these are formally retired.
E. A recapitalization is effected, each shareholder receiving 4 new shares of P50 par value for each share owned.
F. The par value of shares is to be reduced to P50.