Find what is the book value per share on ordinary share

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Blue Corporation's December 31, 2012 balance sheet reports the following shareholders' equity:

10% Cumulative Preference share capital, P100 par value per share,

15,000 shares issued and outstanding P1,500,000

Ordinary share capital, P100 par value, 50,000 shares issued 5,000,000

Share premium reserve 600,000

Treasury stock, (ordinary) 5,000 shares at cost 650,000

Retained earnings 2,100,000

The last payment of dividend on preference was in December 31, 2010. If Blue were to be liquidated, the preference shareholders would receive par value plus a premium of P10 per share.

Problem 1: What is the book value per share on ordinary share?

a. 132.00           c. 146.67

b. 133.00          d. 147.78

Problem 2: If the preference share is participating, what is the book value per share on ordinary share?

a. 126.00           c. 140.00

b. 137.50           d. 146.00

Reference no: EM132745384

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