What is the book value per preference share

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Reference no: EM132745825

Rat Company reported the following shareholders equity on December 31, 2020:

Preference share capital - 12%, P50 par, 20,000 shares issued 1,000,000

Ordinary share capital, P25 par, 100,000 shares issued 2,500,000

Share premium 200,000

Retained earnings 400,000

Retained earnings - appropriated 100,000

Revaluation surplus 300,000

Dividends on preference share have not been paid since 2017. The preference share has a liquidating value of P55 and a call price of P58.

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

a. 61

b. 56

c. 55

d. 58

Reference no: EM132745825

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