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    Practice Exercises Book Value Per Share

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    darwinlorempo23

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    Practice Exercises Book Value Per Share

    Uploaded by

    darwinlorempo23
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    8 views1 page

    Practice Exercises Book Value Per Share

    Uploaded by

    darwinlorempo23

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    PRACTICE EXERCISES ON BOOK VALUE PER SHARE

    1. ABC Co.’s equity structure at December: 31, 2022 is shown below:


    10% Preference shares, P100 par (liquidation value P120 per share) 1,000,000
    Ordinary shares, P100 par 3,000,000
    Subscribed share capital - ordinary shares 100,000
    Subscription receivable (60,000)
    Retained earnings 900,000
    Treasury shares (at cost) - 2,000 ordinary shares (260,000)
    Total shareholders' equity 4,680,000

    Requirement: Compute for the book value per preference share and per ordinary share under each of
    the following cases:
    a. The preference shares are cumulative. Dividends are in arrears for three years.
    b. The preference shares are noncumulative. Dividends are in arrears for three years.
    c. The preference shares are cumulative. All dividends are paid up to end of the current year.

    2. The shareholders’ equity of ABC Construction, Inc. on December 31, 2021 includes the following:
    8% Preference shares, 20,000 shares, P100 par value P3,000,000
    10% Preference shares, 10,000 shares, P300 par value 4,500,000
    Ordinary shares, 50,000 shares, P100 par 7,500,000
    Share premium in excess of par value 2,250,000
    Retained earnings 3,350,000
    Total shareholders’ equity P20,600,000

    The 8% share is cumulative and fully participating. The 10% share is noncumulative and fully
    participating. Dividends have not yet been paid for 3 years.

    Required: Compute for the book value per ordinary share and per preference share.

    --- NOTHING FOLLOWS ---

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