Rod Company had 50,000 shares of P50 par value ordinary share outstanding and 5,000 shares of P100 par preference share outstanding. The current market value of the ordinary share is P120 and the total shareholders’ equity amount to P3,600,000. The preference share has a liquidation value of P140 per share and no dividends are in arrears. What is the book value per ordinary share? A. P50.00 B. P58.00 C. P72.00 D. P120.00

Rod Company had 50,000 shares of P50 par value ordinary share outstanding and 5,000 shares of P100 par preference share outstanding. The current market value of the ordinary share is P120 and the total shareholders’ equity amount to P3,600,000. The preference share has a liquidation value of P140 per share and no dividends are in arrears. What is the book value per ordinary share? A. P50.00 B. P58.00 C. P72.00 D. P120.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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