What is the book value per ordinary share for toy company

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Reference no: EM132745823

Toy Company reported the following shareholder's equity on December 31, 2020:

5% cumulative preference share capital, par value P100; 25,000 shares issued and 2,500,000 outstanding 187

Ordinary share capital, par value P35, 100,000 shares issued and outstanding 3,500,000

Share premium 1,250,000

Retained earnings 3,000,000

Dividends in arrears on the preference share amount to P250,000. If the entity were to be liquidated, the preference shareholders would receive par value plus a premium of P500,000.

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

a. 77.50

b. 75.00

c. 72.50

d. 70.00

Reference no: EM132745823

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