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Book Value Per Share Activity Solution

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Sun Company Kat C

Preference Share Capital 2 000 000 Date


Ordinary Share Capital 3 000 000 Jan-01
Subscribed ordinary share capital 1 000 000 Feb-01
Share premium 660 000 May-01
Retained earnings 1 580 000 Aug-01
Treasury Shares (400 000) Sep-01
Total Shareholder's equity 7 840 000 Nov-01
Preference Share capital 2 000 000
Liquidiation Premium 200 000 Weighted average ordinary shares outstandi
Preference share dividend 600 000 2 800 000
Ordinary Shareholder's Equity 5 040 000

Ordinary Share issued 30 000


Ordinary share subscribed 10 000
Total 40 000
Treasury shares (5 000)
Ordinary shares outstanding 35 000

Book value per ordinary share


(5 040 000/35) 144
Kat Corp
Shares Percentage Total
44 000 x 125% 55 000 * 2 110k * 1 110 000
(44k + 56k) 100 000 x 125% 125k * 2 250k *3 750 000
(100k - 25k) 75 000 x 125% 93 750 * 2 187 500 *4 750 000
- (93,750 + 10 000) 103 750 * 2 207 500 * 4 830 000
- 2 440 000
-

Weighted average ordinary shares outstanding (2 440 000/12) 203 333

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