PRACTICE QUIZ - BOOK VALUE AND PREFERENCE

DIVIDENDS

Retro Company provided the following data at year-end:

12% Preference share capital, 20,000 shares, P100 par value 2,000,000

14% Preference share capital, 10,000 shares, P300 par value 3,000,000

Ordinary share capital, 50,000 shares, P100 par value 5,000,000

Retained earnings 2,240,000

Share premium 1,500,000

The 12% preference share is cumulative and participating. The 14% preference share is

noncumulative and participating. Dividends are in arrears for 3 years.

What is the book value per ordinary share?

Simplex Company provided the following data at year-end:

Preference share capital, 10% cumulative and nonparticipating, P100 par, dividends are

in arrears for 3 years

2,000,000

Ordinary share capital, P100 par, 40,000 shares 4,000,000

Subscribed ordinary share capital, 20,000 shares 2,000,000

Subscription receivable 500,000

Share premium 1,000,000

Retained earnings 2,400,000

Treasury ordinary shares, 10,000 at cost 800,000

What is the book value per ordinary share?