9A. How much is the excess of par to be used for book value per share computation?9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: xx.xx) On December 31, 2021, the statement of financial position of FRUITS Company showed thefollowing shareholders' equity accounts:• Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury7,500 shares - P 4,250,00012% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, intreasury 4,000 shares - P 1,500,000Share premium in excess of par - P 862,500Reserve for Treasury shares - P 725,000Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000Retained earnings, unrestricted -P 2,168,000Net income for the year - P 762,000Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

The book value of a share refers to the value of a share that is available to the shareholder. In…

9A. How much is the excess of par to be used for book value per share computation? 9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: xx.xx)

9A. How much is the excess of par to be used for book value per share computation? 9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: xx.xx)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: PLEASE PROVIDE COMPUTATION!

A: Equity Share - Share capital and equity finance are other names for equity capital. It is referred…

Q: Which of the following correctly ranks the costs of debt (rd), preferred stock (rp), retained…

A: Capital structure determines how much funds are raised through different sources of capital. It also…

Q: How do we calculate the share price of year 1 to 4. What is the formula ?

A: Given: Year 1 dividend (D1) = $3 Growth rate = 2% Increase in dividend = $5 Required rate of return…

Q: Round all answers to two decimal places except for dividend payout ratio which is rounded to four…

A: Ratio Analysis: This is the process of computing, determining, and presenting the relationship of…

Q: Which of the following is not a type of dilution? Select one: a. dilution of percentage ownership…

A: Dilution : Dilution is that the reduction of a shareholder's ownership percentage that's caused by…

Q: Briefly discuss clientele theory and signaling theory of dividend policy

A: Dividend policy of a company is the policy to either retain or distribute the profit of a company.…

Q: What are the three (3) components that the return from shares can be broken down into?

A: The capital of a corporation consists of units of shares that are used by the corporation to acquire…

Q: Describe what is meant by the weighted-average number of common shares.

A: Weighted average shares outstanding refers to the number of shares of a company calculated after…

Q: Markus Company's common stock sold for $5.75 per share at the end of this year. dividend of $0.69…

A: Return on equity is calculated by dividing net income to the average shareholder's equity

Q: Book value per common share is computed by: O Multiplying the number of common shares outstanding…

A: Common stock indicates the ownership of the company held by investors called shareholders.

Q: When treasury stock is acquired, what is the effect on total stockholders' equity? Multiple Choice O…

A: The company either issues preferred shares or common shares. The preferred shares have a preference…

Q: 1. How many shares of treasury stock are owned? fill in the blank 1 shares 2. What was the…

A: Since you have posted a multi-part question, we will solve the first first 3 sub-parts for you. For…

Q: If the payout ratio is 0.40 and dividends are 40 , then net income is Select one: a. 80 b. 100…

A: Dividend payout ratio is the share of dividend paid to the shareholders out of the total income of…

Q: e. Return on stockholders' equity 23.0 x % f. Return on common stockholders' equity 1.4 x %

A: Stockholders’ equity return is calculated as follows: Formulation:

Q: #2 See the historical year-end price and dividend information for XYZ. Compute the dividend yield,…

A: Given,

Q: 4 of stion Determine the market value of a Digicel Stock if Do = 3.00, K₂= 13%, G = 6%. Select one:…

A: D0=$3Growth rate=6%Cost of equity (Ks)=13%

Q: Determine the dividends per share for preferred and common stock for each year. Round all answers to…

A: Cash dividends: The amount of cash provided by a corporation out of its distributable profits to…

Q: Consider the following data: D₁ =$1.55; P 0-$49.50; g-6.79% (constant); and F = 2.00%. What is the…

A: Expected Dividend = d1 = $1.55Current Price of Stock = p0 = $49.50Growth Rate = g = 5.70%Flotation…

Q: Hello, which table would I use to find the ratio of exchange in a stock? I'm attaching the tables,…

A: Answer. To find Ratio of exchange in shares ~ Table 4 NCC & Portable additional data would be…

Question

9A. How much is the excess of par to be used for book value per share computation?

9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: xx.xx)

On December 31, 2021, the statement of financial position of FRUITS Company showed the
following shareholders' equity accounts:
• Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury
7,500 shares - P 4,250,000
12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in
treasury 4,000 shares - P 1,500,000
Share premium in excess of par - P 862,500
Reserve for Treasury shares - P 725,000
Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000
Retained earnings, unrestricted -P 2,168,000
Net income for the year - P 762,000
Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Meaning of book value and participative and cumulative preference share

VIEW

Step 2: Computation of excess of part to be used

VIEW

Step 3: Calculation of book value per share of preference share

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

how is price oc preffered stock gotten
it say all answers above are incorrect, i need the aftertax cost of debt and the aftertax cost of preferred stock as a percent rounded to 2 decimal places.
Using the information in AA8, what is the par value for each preference share capital? P 12 P 10 P 25 P 40
q7- Which of the following statements is true? Select one: a. Trailing P/E is based on the current share price and forward P/E is based on next year's forecast share price. b. Trailing P/E is based on last year's share price and forward P/E is based on the current share price. c. Both trailing and forward P/E are based on the current share price. d. Trailing P/E is based on last year's share price and forward P/E is based on next year's forecast share price. Clear my choice
What is the formula for the dividens paid that results in the -787? I am struggling to find the correct numbers to use
Determine the following measures for 20Y2, rounding to one decimal place including, percentage, except for per-share amounts. 5. Number of days sales in receivables 7. number of days sale in inventory 12. return on total asset 14. return on common stockholders equity 17. dividends per share of common stock 18. dividend yield i need help on these questions i have provided please please please
Only need last 2 parts of the problem.
For the calculation of weighted average number of shares where does the (4) come from when you are doing (921,000/4) ?
9
Pet Boutique Corp. reported $4,549,230 of profit for 2023. On November 2, 2023, it declared and paid the annual preferred dividends of $261,880. On January 1, 2023, Pet Boutique had 73,500 and 567.000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 1 Declared and issued a 20% common share dividend.. Apr.30 Sold 119,130 common shares for cash. Sold 49,410 preferred shares for cash. Sold 37,800 common shares for cash. May 1 Oct. 31 a. What is the amount of profit available for distribution to the common shareholders? Earnings available to common shareholders b. What is the weighted average number of common shares for the year? Weighted average outstanding shares
Coronado Corporation had net income for the current year ending December 31, 2023 of $1,164,700. Throughout 2023 the following items were outstanding: ● ● ● 394,000 common shares 20,500 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 50,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of 1 common share for every 2 preferred shares. $476,000, 8% bonds that were convertible to 14,000 common shares $360,000, 10% bonds convertible to 12,000 common shares No dividends were declared or paid in 2023. Coronado's tax rate is 25%.