Problem #36 Book Value per Share Lusterio Corporation's ordinary share is currently selling on a stock exchange at P170 per share, and a recent statement of financial position showed the following information: Shareholders' Equity Preference Shares, 5%, P? par value, 1,000 shares authorized, issued and outstanding Ordinary Shares, P? par value, 4,000 shares authorized, issued and outstanding Retained Earnings Total Shareholders' Equitý P100,000 160,000 300,000 P560,000 Required: 1. What is the market value of the ordinary shares? 2. What are the par values of the preference shares and ordinary shares? 3. If no dividends are in arrears, what are the book values per share of the preference and ordinary shares? 4. If two years' preference dividends are in arrears, what are the book values per share of the preference and ordinary shares? 5. If two years' preference dividends are in arrears and the preference shares has a liquidation value of P110 per share, what are the book values per share of the preference and ordinary shares?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem #36
Book Value per Share
Lusterio Corporation's ordinary share is currently selling on a stock exchange at P170
per share, and a recent statement of financial position showed the following
information:
Shareholders' Equity
Preference Shares, 5%, P? par value, 1,000 shares
authorized, issued and outstanding
Ordinary Shares, P? par value, 4,000 shares
authorized, issued and outstanding
Retained Earnings
Total Shareholders' Equity
P100,000
160,000
300,000
P560,000
Required:
1.
What is the market value of the ordinary shares?
2. What are the par values of the preference shares and ordinary shares?
3. If no dividends are in arrears, what are the book values per share of the preference
and ordinary shares?
4. If two years' preference dividends are in arrears, what are the book values per share
of the preference and ordinary shares?
5. If two years' preference dividends are in arrears and the preference shares has a
liquidation value of P110 per share, what are the book values per share of the
preference and ordinary shares?
Transcribed Image Text:Problem #36 Book Value per Share Lusterio Corporation's ordinary share is currently selling on a stock exchange at P170 per share, and a recent statement of financial position showed the following information: Shareholders' Equity Preference Shares, 5%, P? par value, 1,000 shares authorized, issued and outstanding Ordinary Shares, P? par value, 4,000 shares authorized, issued and outstanding Retained Earnings Total Shareholders' Equity P100,000 160,000 300,000 P560,000 Required: 1. What is the market value of the ordinary shares? 2. What are the par values of the preference shares and ordinary shares? 3. If no dividends are in arrears, what are the book values per share of the preference and ordinary shares? 4. If two years' preference dividends are in arrears, what are the book values per share of the preference and ordinary shares? 5. If two years' preference dividends are in arrears and the preference shares has a liquidation value of P110 per share, what are the book values per share of the preference and ordinary shares?
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