You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and Masaya shares are valued at P50 and P60 respectively. Maligaya has total book value of P54,000,000 for its 1,200,000 outstanding ordinary shares. On the other hand, Masaya has total book value of P208,000,000 for its 4,000,000 outstanding ordinary shares. Compared to Masaya, a Maligaya share is over/(under) valued by how much?
You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and Masaya shares are valued at P50 and P60 respectively. Maligaya has total book value of P54,000,000 for its 1,200,000 outstanding ordinary shares. On the other hand, Masaya has total book value of P208,000,000 for its 4,000,000 outstanding ordinary shares. Compared to Masaya, a Maligaya share is over/(under) valued by how much?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
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Direct Comparison Using Book Values:
You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and Masaya shares are valued at P50 and P60 respectively. Maligaya has total book value of P54,000,000 for its 1,200,000 outstanding ordinary shares. On the other hand, Masaya has total book value of P208,000,000 for its 4,000,000 outstanding ordinary shares. Compared to Masaya, a Maligaya share is over/(under) valued by how much?
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