Takehome - EPS & BVPS PDF

NAME: _______________________ C:Y:S: _______ DATE: ________
Compute the book value per share of each class of share based on the following independent cases:
CASE 1 CASE 2 CASE 3 CASE 4

Ordinary shares, ₱10 par ₱720,000 ₱720,000 ₱720,000 ₱720,000
10% Preference shares, ₱50 par 24,000 24,000 24,000
Subscribed ordinary shares 48,000 48,000
Ordinary share premium 432,000 432,000 432,000 432,000
Preference share premium 14,400 14,400 14,400
Treasury share premium 28,800
Donated capital 216,000 216,000 216,000
Retained earnings (Deficit) (288,000) 864,000 864,000 864,000
Revaluation surplus 1,440,000 1,440,000 1,440,000 1,440,000
Unrealized loss in FAFVOCI 288,000
Ordinary treasury shares, ₱12 cost per share 72,000
Preference share
liquidating value per share None 60 120 65
Preference share Preferred as Cumulative Noncumulative Cumulative
to assets and and and
Participating Nonparticipating Nonparticipating
Dividend in arrear(s) 1 year(s) 2 year(s) 2 year(s) 2 year(s)
Compute the book value per share

CASE 1 CASE 2 CASE 3 CASE 4
Ordinary shares
Preference shares
NAME: _______________________ C:Y:S: _______ DATE: ________
Simplex Company provided the following data at December 31, 2017:
Preference share capital, 10% cumulative and participating,

$100 par, dividends are paid until 2014, liquidating value is
$102 per share 2,400,000
Ordinary share capital, $100 par, 48,000 shares 4,800,000
Subscribed ordinary share capital, 24,000 shares 2,400,000
Subscription receivable 600,000
Share premium 1,200,000
Retained earnings 2,880,000
Treasury ordinary shares, 12,000 shares at cost 960,000
Compute the following:
Legal capital
9,600,000
Contributed capital
10,200,000
Amount of unpaid prior period dividends

480,000
Amount of current year dividends

840,000
Amount allocated to preference share after ordinary shares
received its current year dividends 843,429
Book value per share - ordinary shares

145.14
Book value per share - preference shares

167.14
NAME: _______________________ C:Y:S: _______ DATE: ________
ABC Co. has the following shareholders' equity year-end balances for four consecutive years:
12/31/2018 12/31/2019 12/31/2020 12/31/2021

Ordinary shares 200,000 200,000 300,000 300,000
Preference shares 500,000 500,000 500,000
Share premium 100,000 350,000 400,000 400,000
Retained earnings 200,000 800,000 1,600,000 2,800,000
Net income 800,000 1,000,000 1,200,000 980,000
Dividend declareds and paid 200,000 200,000
Compute the book value per share

12/31/2018 12/31/2019 12/31/2020 12/31/2021
Ordinary shares
Preference shares
NAME: _______________________ C:Y:S: _______ DATE: ________ SOLUTIONS:
1/1/2018 Opening balance of outstanding ordinary shares, 160,000 ordinary shares

10% Bonds payable, each ₱1,000 bond is convertible into 10 ordinary shares for a total of 32,000 ordinary
shares. Tax rate is 30%
4/1/2018 Issued 32,000 ordinary shares from exercise of share rights for ₱46.20 per share. The market value of share
ex-right is ₱55.00 per share. The share rights were issued in 2017.
6/30/2018 Acquired 11,200 ordinary shares
12/31/2018 Net income available to ordinary shareholders is ₱1,600,000.

Weighted average of actual outstanding ordinary shares for basic earnings per share
Number of outstanding ordinary shares, for book value per share computation
Basic earnings per share
Theoretical value of share right
Diluted earnings per share
Face value of the bonds

5% Cumulative preference shares convertible into 16,000 ordinary shares. Each ₱100 par value preference
share is convertible into two ordinary shares.
2/1/2018 Issued 16,000 ordinary shares.
4/2/2018 Issued 32,000 ordinary shares.,
6/1/2018 Issued 16,000 share options to purchase 16,000 ordinary shares for ₱50 per share. The fair value of share
option is ₱40 per share. Average market price of ordinary share is ₱60 per share.


Weighted average of actual outstanding ordinary shares for basic earnings per share
Incremental ordinary shares using Treasury share method
Diluted earnings per share
NAME: _______________________ C:Y:S: _______ DATE: ________

2/1/2018 Issued 16,000 ordinary shares.
4/2/2018 Issued 32,000 ordinary shares.,
6/1/2018 Reissued 8,000 treasury shares.
7/31/2018 25% ordinary share dividend
11/28/2018 2 for 1 ordinary share split

Number of outstanding ordinary shares, for Basic EPS computation
Number of shares
1/1/2018 Opening balance 200,000
3/2/2018 Balance after issuance of ordinary shares 250,000
5/31/2018 Balance after issuance of ordinary shares 280,000
7/30/2018 Balance after reacquisition of ordinary shares 260,000
10/28/2018 Balance after 2 for 1 ordinary share split 520,000

Number of outstanding ordinary shares, for Basic EPS computation
Superior, Inc. had 600,000 ordinary shares issued and outstanding on December 31, 2016. Superior issued a 32% bonus
issue on July 1, 2017. On October 1, 2017, Superior reacquired 60,000 shares of its ordinary share capital, which were
placed in the treasury. Net income after tax in 2017 is ₱1,000,000.
Basic EPS
Weighted average of outstanding ordinary shares (BEPS computation)
Weighted average of outstanding ordinary shares (DEPS computation)
Diluted EPS
White Incorporated, had 40,000,000 ordinary shares outstanding on December 31, 2016. On April 1, 2017 and July 1, 2017,
White issued 5,000,000 shares and 1,000,000 shares, respectively. On October 1, 2017, White issued 10,000, ₱1,000 face
value, 13% convertible bonds. Each bond is convertible into 10 shares of ordinary share capital. No bonds were converted
into ordinary share in 2017. Net income after tax in 2017 is ₱1,500,000. Income tax rate is 30%.
Basic EPS
Diluted EPS
SOLUTIONS:
Lefton Inc. had 600,000 ordinary shares and ₱5,000,000, 13% bonds outstanding at December 31, 2016. The bonds are
convertible into ordinary shares at the rate of 5 shares for each ₱1,000 bond. On April 1, 2017, Lefton issued for cash an
additional 180,000 ordinary shares. No bonds were issued or converted into ordinary shares during 2016. Net income after
income tax is ₱750,000.
Basic EPS
Diluted EPS

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NAME: _______________________ C:Y:S: _______ DATE: ________

CASE 1 CASE 2 CASE 3 CASE 4

Compute the book value per share

Simplex Company provided the following data at December 31, 2017:

Preference share capital, 10% cumulative and participating,

Compute the following:

Amount of unpaid prior period dividends

Amount of current year dividends

Book value per share - ordinary shares

Book value per share - preference shares

12/31/2018 12/31/2019 12/31/2020 12/31/2021

Compute the book value per share

1/1/2018 Opening balance of outstanding ordinary shares, 160,000 ordinary shares

Compute the following:

1/1/2018 Opening balance of outstanding ordinary shares, 160,000 ordinary shares

7/31/2018 Acquired 11,200 ordinary shares

Compute the following:

1/1/2018 Opening balance of outstanding ordinary shares, 160,000 ordinary shares

Compute the following:

Compute the following:

Weighted average of outstanding ordinary shares (BEPS computation)

Weighted average of outstanding ordinary shares (DEPS computation)

Weighted average of outstanding ordinary shares (BEPS computation)

Weighted average of outstanding ordinary shares (DEPS computation)

Weighted average of outstanding ordinary shares (BEPS computation)

Weighted average of outstanding ordinary shares (DEPS computation)

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NAME: ___________________ C:Y:S: _ DATE: ______