Reference no: EM132809736
Book value per share
BB, Inc. shareholders' equity section of the statement of financial position is as follows:
5% Cumulative Preference Shares, P1,000 par, 5,000 shares authorized, 1,000 shares issued and outstanding-----------P 1,000,000
Ordinary Shares, P100par, 20,000 shares authorized, 5,500 shares issued and outstanding ---------------------P550,000
Share premium - Preference ----------------------------------------------------------------------------------P400,000
Share premium - Ordinary -------------------------------------------------------------------------------------P700,000
Retained earnings ------------------------------------------------------------------------------------------------P900,000
The preference shares has a liquidation value of P1,200 and dividends are in arrears for three years. No declaration of dividends made for the current period.
Required:
Problem 1. Compute for the book value per Preference Shares.
Problem 2. Compute for the book value per Ordinary Shares.