BOOK VALUE PER SHARE 3.

Equity balances f Leslie Company as of the end of the

reporting period follow:
The shareholders’ equity in the statement of financial 12% preference share capital,
position on December 31, 2019 showed the following 200,000 shares, par P100 P20, 000, 000
Ordinary share capital, 500,000 50,000,000
Preference share capital, 12% P100 par,
Shares, par P100
25,000 shares 2,500,000
Share premium 10,000,000
Ordinary share capital 5,000,000
Retained earnings 15,000,000
Share premium 600,000
Retained earnings 3,000,000 The preference shares have a call price of P130, a
Total shareholders’ equity 11,100,000 liquidation price of 115 and dividends have not been paid
for 3 years. The book value per share of preference shares
Dividend have been paid on the preference share up to should be
December 31, 2017.
a. 127 c. 151
Compute the book value per ordinary share and per b. 112 d. 115
preference share under each of the following conditions
with respect to preference share: 4. The shareholders equity of gloomy company on
December 31, 2019 consisted of the following:
1. Preference share is noncumulative and Preference share capital, P100 par
nonparticipating Value. 12% annual dividend 5,000,000
2. Preference share is cumulative and Ordinary share capital, P100 par 15,000,000
nonparticipating Share premium 3,000,000
3. Preference share is cumulative and participating Retained earnings 4,000,000
4. Preference share is cumulative and participating Total 27.000.000
up to 16%
5. Preference share is cumulative, nonparticipating The preference share is noncumulative and
and with liquidation value of P106 per share nonparticipating with a liquidation value of P120 per
share. Preference dividends have been paid up to
December 31, 2019. What is the book value per share of
1. Which statement is incorrect regarding book value ordinary?
per share a. 140.00 c. 146.67
a. BVPS is a measure of the level of safety associated b. 136.00 d. 142.67
with each individual share after all debts are paid
accordingly 5. The shareholder equity of Windy Company on
b. BVPS is the amount that a shareholder would get December 31, 2019, consists of the following capital
if the entity were to liquidate. balances:
c. BVPS is computed based on the assumption that Preference share capital, 10%
the amount available for distribution to owners is Cumulative, 3 years in arrears,
equal to the book value of equity. P100 par, P110 liquidation price
d. BVPS is computed by dividing the entity’s profit by 150,000 shares 15,000,000
the number of shares outstanding. Ordinary share capital, P100 par,
200,000 shares 20,000,000
2. The equity balances of Memory Company as of the Subscribed ordinary share capital, net
end of the reporting period are: Of subscription receivable of
Ordinary share capital, P100 par, P4,000,000 6,000,000
360,000 shares 36,000,000 Treasury shares-ordinary, 50,000
Subscribed ordinary share capital, Shares at cost 4,000,000
60,000 shares 6,000,000 Share premium 3,000,000
Subscriptions receivable 2,000,000 Retained earnings 20,000,000
Treasury shares. 20,000 shares, at Book value per share of ordinary is
Cost 3,000,000 a. 156.00 c. 172.00
Retained earnings 10,000,000 b. 190.00 d. 286.67
The book value per ordinary is
a. 122.50 c. 117.50
b. 130.00 d. 125.00