Use The Following Information For The Next Three Questions:: Book Value Per Share
Use The Following Information For The Next Three Questions:: Book Value Per Share
PROBLEM 3: EXERCISES
1. The preference shares are cumulative. Dividends are in arrears for four years.
Requirement: Compute for the book value per preference share and per ordinary share.
Solution:
2. The preference shares are noncumulative. Dividends are in arrears for four years.
Requirement: Compute for the book value per preference share and per ordinary share.
Solution:
Total 40,000
3. The preference shares are cumulative. All dividends are paid up to end of the current year.
Requirement: Compute for the book value per preference share and per ordinary share.
Solution:
Dividends - (1,500,000)
Total 40,000
4. The stockholders' equity of Retro Company on December 31, 2008 includes the following:
The 12% stock is cumulative and fully participating. The 14% stock is noncumulative and fully
participating. Dividends have not yet been paid for 3 years.
Total shareholders’ equity 13,740,000
Allocation:
Solution:
Total 150,000
2. The shareholders' equity of STATUTE LAW Co. as of year-end consisted of the following:
Requirements:
Solution: