The following is the condensed balance sheet of Red Corporation as of the end of 2020. Amounts are in millions of pesos. ASSETS Current Noncurrent TOTAL LIABILITIES AND EQUITY 5 Current Liabilities 15 Noncurrent Liabilities 20 Preference Share Capital, P1,000 par, 8% cumulative Ordinary Share Capital, P100 par Retained Earnings TOTAL 1 3 6 8 2 20
1. Using Problem 1 and assuming the
2. Using Problem 1, how much is the book value per ordinary share assuming the preference shares are non-cumulative and participating up to 12%? *
3. Using Problem 1 and assuming the preference shares are non-cumulative and participating up to 12%, in case RED Corporation is liquidated, how much would be the total amount to be received by an investor who holds 2,400 ordinary shares and 500 preference shares? *
4. How much would the total value of the three buildings be based on the above information? *
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