Reference no: EM133186338
Question - Hoyt Company reported the following shareholders equity at year end:
5% cumulative preference share capital, par value
P100 per share: 25,000 shares issued and outstanding 2,500,000
Ordinary Share Capital , par value P35 per share
100,000 shares issued outstanding 3,500,000
Share Premium 1,250,000
Retained Earnings 3,000,000
Dividends in arrears on the preference share amounted to P250,000. If the entity were to be liquidate, the preference shareholders would receive par value plus a premium of P500,000. What is the book value per ordinary share?