Using the same data, what is the minimum interest on share capital holdings?

• A. P56,700
• B. P25,200
• C. P32,100
• D. P36,300

Answer: (A)

The amount represents the minimum return that must be allocated to holders of share capital based on the required rate of return applied to the capital contributed. To find it, you take the total share capital outstanding and multiply it by the minimum rate of return specified (the hurdle rate or policy rate for equity). If there are different classes of shares, you compute for each class and sum the results.

Using the same data as in the problem, applying the minimum rate to the share capital base yields P56,700. That’s why this option is the correct fit—it directly reflects the mandated return on the capital actually invested by shareholders. The other figures would come from using a different base or rate (for example, applying a higher or lower rate, or using a different denominator), which is not consistent with the definition of minimum interest on share capital holdings.