3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000. Administrative costs of liquidation and wages payments are expected to be P500,000. A sale of assets is expected to bring P5,000,000 subsequent to payment of all costs and taxes. What is the liquidation value of Via Corp? a.) P500,000 b.) P1,500,000 c.) P2,500,000 d.) P3,000,000 c.) P5,000,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000. Administrative
costs of liquidation and wages payments are expected to be P500,000. A sale of assets is expected to bring
P5,000,000 subsequent to payment of all costs and taxes. What is the liquidation value of Via Corp?
a.) P500,000
b.) P1,500,000
c.) P2,500,000
d.) P3,000,000
e.) P5,000,000
4. PCC Inc has a debt-to-equity ratio or 3:1. After tax cost of debt is 5% while cost of equity is 10%. The board of
directors of the company deccided to sell 100% of the company for P1,000,000,000. Compute the projected
monthly average earnings assuming an EVA of P57,500,000.
a) P37,500,000
b) P10,000,000
c) P100,000,000
d) P120,000,000
e) P130,000,000
QC Corp. declared its dividend consistent with its dividend yield of 0.10. This year, QC Corp's stockholder
received P0.75 for every share they have in the company. The company's market value per share when the
dividend was declared should be?
5.
a.) P7.50
b.) P5.70
с.) РО.13
d.) PO.75
e.) P7.60
Transcribed Image Text:3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000. Administrative costs of liquidation and wages payments are expected to be P500,000. A sale of assets is expected to bring P5,000,000 subsequent to payment of all costs and taxes. What is the liquidation value of Via Corp? a.) P500,000 b.) P1,500,000 c.) P2,500,000 d.) P3,000,000 e.) P5,000,000 4. PCC Inc has a debt-to-equity ratio or 3:1. After tax cost of debt is 5% while cost of equity is 10%. The board of directors of the company deccided to sell 100% of the company for P1,000,000,000. Compute the projected monthly average earnings assuming an EVA of P57,500,000. a) P37,500,000 b) P10,000,000 c) P100,000,000 d) P120,000,000 e) P130,000,000 QC Corp. declared its dividend consistent with its dividend yield of 0.10. This year, QC Corp's stockholder received P0.75 for every share they have in the company. The company's market value per share when the dividend was declared should be? 5. a.) P7.50 b.) P5.70 с.) РО.13 d.) PO.75 e.) P7.60
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