Compute the book value per ordinary share

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Problem - LABAN Company provided the following shareholders' equity on December 31, 2020:

Preference share capital, 12% P100 par 1,000,000

Ordinary share capital, P100 4,000,000

Share premium 2,000,000

Retained Earnings 1,000,000

Dividends have been paid on the preference share up to December 31, 2017.

Required - Compute the book value per ordinary share and per preference share under each of the following conditions with respect to preference share:

a) Cumulative and fully participating

b) Cumulative and fully participating after ordinary share receives 15%

c) Cumulative and participating up to 16%

d) Cumulative and non-participating

e) Noncumulative and non-participating

Reference no: EM132925281

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