Problem 3 (Adapted) Shalom corporation’s current balance sheet reports the following shareholder’s equity: 5% cumulative preference share, par value, 100 per share, 50,000 shares issued and outstanding 5,000,000 Ordinary share, par value 35 per share, 200,000 shares issued, And outstanding 7,000,000 Share premium in excess of par value of ordinary share 2,500,000 Retained Earnings 6,000,000 Dividends in arrears on the preference share amount to 500,000. If Shalom were to be liquidated, the preference shareholders’ would receive par value plus a premium of 1,000,000. How much would be the book value per share of ordinary share?
Problem 3 (Adapted) Shalom corporation’s current balance sheet reports the following shareholder’s equity: 5% cumulative preference share, par value, 100 per share, 50,000 shares issued and outstanding 5,000,000 Ordinary share, par value 35 per share, 200,000 shares issued, And outstanding 7,000,000 Share premium in excess of par value of ordinary share 2,500,000 Retained Earnings 6,000,000 Dividends in arrears on the preference share amount to 500,000. If Shalom were to be liquidated, the preference shareholders’ would receive par value plus a premium of 1,000,000. How much would be the book value per share of ordinary share?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.13AMCP
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Problem 3 (Adapted)
Shalom corporation’s current balance sheet reports the following shareholder’s equity:
5% cumulative
50,000 shares issued and outstanding 5,000,000
Ordinary share, par value 35 per share, 200,000 shares issued,
And outstanding 7,000,000
Share premium in excess of par value of ordinary share 2,500,000
Dividends in arrears on the preference share amount to 500,000. If Shalom were to be
liquidated, the preference shareholders’ would receive par value plus a premium of 1,000,000.
How much would be the book value per share of ordinary share?
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