How much is the book value per preference share

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Question - Data relating to the shareholders' equity of Loven's Co. during December 31, 2016 are as follows:

8% Preference share, P400 par, 12,500 shares 5,000,000

Ordinary share, P40 par, 75,000 shares issued 3,000,000

Retained earnings 7,000,000

Total shareholders' equity 15,000,000

Dividends are in arrears for 4 years.

Based on the above data, answer the following independent cases:

Case No. 1: Assume that the preference shares are cumulative.

1. How much is the book value per preference share?

2. How much is the book value per ordinary share?

Case No. 2: Assume that the preference shares are cumulative with liquidation value of P420 per share.

3. How much is the book value per preference share?

4. How much is the book value per ordinary share?

Case No. 3: Assume that the preference shares are noncumulative.

5. How much is the book value per preference share?

6. How much is the book value per ordinary share?

Case No. 4: Assume that the preference shares are cumulative and participating.

7. How much is the book value per preference share?

8. How much is the book value per ordinary share?

Reference no: EM132945465

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