Ordinary shareholders' equity is obtained by deducting from total shareholders' equitythe preference shareholders' equity. The book value per share of the ordinary shares iscomputed by dividing the ordinary shareholders' equity by the number of ordinaryshares outstanding.illustration. Roberto D. Gonzales AdMark, Inc. is one of the leading firms doing highlycreative tri-media product exposures in Metro Manila and Calabarzon. Theshareholders' equity section of the statement of financial position is as follows:6% Cumulative Non-participating Preference Shares,P1,000 par, 5,000 shares authorized, 400 shares issuedand outstandingOrdinary Shares, P100 par, 20,000 shares authorized,5,500 shares issued and outstandingShare Premium-PreferenceP400,000.00P550,000.0040,000720,000Share Premium-OrdinaryRetained EarningsTotal Shareholders' Equity850,000P2,560,000.00Suppose that the preference shares has a liquidation value of P1,300 and dividends areIn arrears for three years. compute for the book value per share for both preference and ordinaryAssume that the company earns 150K with 1year arrear on dividend for preferred sharehow much is the correspondng earning for each type of shares?

Book value per share (BVPS) is the ratio of equity available to ordinary shareholders is divided by…

Answered: Suppose that the preference shares has…

Suppose that the preference shares has a liquidation value of P1,300 and dividends are n arrears for three years. compute for the book value per share for both preference and ordinary

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter4: Profitability Analysis

Section: Chapter Questions

Problem 11QE: Phillips-Van Heusen, an apparel manufacturer, reported net income (amounts in thousands) for Year 4...

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The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60%shares of class A common stock. Stock has par value of $48.00 per share and was issued at $105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). Issued 60%shares of no-par class B stock. Issue Price $98.00 Issued 20%shares of preferred stock at…
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The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information . Issued 40% of authorized shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. Issued at $60, 40% of authorized shares of no-par class B stock. Issued 30% of authorized shares of preferred stock at par value $125. Exchanged 40% of authorized shares of class A common stock for Office…