Black and White Corp.’s balance sheet shows total assets of P3,000,000 and total liabilities of P1,350,000. It has 55,000 ordinary shares issued, of which 5,000 are treasury shares. Upon checking the market, assets can be sold at 80% of book value today but an additional P300,000 will be incurred to cover liquidation expenses. How much is the liquidation value per share of Black and White Corp.?
Black and White Corp.’s balance sheet shows total assets of P3,000,000 and total liabilities of P1,350,000. It has 55,000 ordinary shares issued, of which 5,000 are treasury shares. Upon checking the market, assets can be sold at 80% of book value today but an additional P300,000 will be incurred to cover liquidation expenses. How much is the liquidation value per share of Black and White Corp.?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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