Reference no: EM132865005

Problem 1: ABC Co. has outstanding ordinary shares and nonparticipating, non-cumulative preferred shares. The liquidation value of the preferred shares is equal to its par value. The book value per ordinary share is unaffected by 

A. the declaration of a share dividend on preferred payable in preferred shares when the market price of the preferred is equal to its par value.

B. the declaration of a share dividend on ordinary shares payable in ordinary shares when the market price of the ordinary is equal to its par value.

C. the payment of a previously declared cash dividend on the ordinary share.

D. a 2-for-1 split of the ordinary share