How much is the book value per ordinary share assuming that preference shares are cumulative and fully participating?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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11

Data relating to the shareholders’ equity of ABC Co. during December 31 are as follows:

8% preference share, P 40,000 shares – P 4,000,000

Ordinary share, 26,000 shares – P 1,040,000

Treasury ordinary shares (1,000 shares at cost) – P 70,000

Retained Earnings – P 7,000,000

Dividends are in arrears for four years.

 

How much is the book value per ordinary share assuming that preference shares are cumulative and fully participating?

 

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