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DAGALA - Lets Analyze

1. Yelan Company's book value per share is $176, calculated by taking total shareholder's equity of $8,800,000 and dividing by the 50,000 shares outstanding. 2. For Wendelove Company, the book value per preference share is $169.6 and the book value per ordinary share is $157.6 under the first set of balances. 3. For Shalom Corporations, the book value per ordinary share is $70, calculated by taking the ordinary shareholder's equity of $14,000,000 and dividing by the 200,000 ordinary shares outstanding.

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66 views4 pages

DAGALA - Lets Analyze

1. Yelan Company's book value per share is $176, calculated by taking total shareholder's equity of $8,800,000 and dividing by the 50,000 shares outstanding. 2. For Wendelove Company, the book value per preference share is $169.6 and the book value per ordinary share is $157.6 under the first set of balances. 3. For Shalom Corporations, the book value per ordinary share is $70, calculated by taking the ordinary shareholder's equity of $14,000,000 and dividing by the 200,000 ordinary shares outstanding.

Uploaded by

Jeric Torion
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We take content rights seriously. If you suspect this is your content, claim it here.
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DAGALA, GERI WEEK 4-5

ACC221(7751) LET’S ANALYZE

BOOK VALUE PER SHARE


PROBLEM 1: YELAN COMPANY
Share capital 5,000,000
Share premium 1,000,000
Retained earnings 2,000,000
Revaluation surplus 800,000
8,800,000/ 50,000 shares
= 176

PROBLEM 2: WENDELOVE COMPANY

A. EXCESS PER SHARE PREFERENCE ORDINARY


Balances 12,000,000 4,000,000 16,000,000
Preference dividend (960,000) 960,000 1,920,000
Ordinary dividend (1,920,000)
Balance for participation 9,120,000

Preference 1,824,000
Ordinary 7,296,000
Total shareholder’s equity 6,784,000 25,216,000
Divide by shares outstanding 40,000 160,000
Book value per share 169.6 157.6

B.
Balances 2,000,000 4,000,000 16,000,000
Preference dividend (480,000) 480,000
Balance to common 1,520,000 1,520,000
Total shareholder’s equity 4,480,000 17,520,000
Divide by shares outstanding 40,000 160,000
Book value per share 112 109.5

C.
Balance 2,000,000 4,000,000 16,000,000
Preference dividend (960,000) 960,000
Balance to common 1,040,000 1,040,000
Total shareholder’s equity 4,960,000 17,040,000
Divide by shares outstanding 40,000 160,000
Book value per share 124 106.5
PROBLEM 3: SHALOM CORPORATIONS

Total shareholder’s equity 20,500,000


Preference share capital 5,000,000
Preference dividends in arrears 500,000
Liquidation premium 1,000,000 (6,500,000)
Ordinary shareholder’s equity 14,000
Divide ordinary shares outstanding 200,000
Book value per ordinary shares 70

PROBLEM 4: JOYCE COMPANY

excess overpar 10% 12% ordinary


Balances 1,600,000 1,000,000 1,200,000 800,000
1,000,000 x 10% x 2 (200,000) 200,000
1,200,000 x 12% (144,000) 144,000
800,000 x 10% (96,000) 96,000
Balance 1,160,000 386,667 464,000 309,333
Total shareholder’s equity 1,586,667 1,808,000 1,205,333
Divide by shares outstanding 10,000 12,000 20,000
Book value per share 158.6667 157 60.26665

PROBLEM 5: DIXIE COMPANY

Total shareholder’s equity 7,400,000


Preference share capital 2,000,000
Preference dividends in arrears 320,000
Liquidation premium 200,000 (2,520,000)
Ordinary shareholder’s equity 4,880,000
Divide ordinary shares outstanding 100,000
Book value per ordinary shares 48.8

PROBLEM 6: ANNA COMPANY

A. EXCESS overpar PREFERENCE ORDINARY


Balances (1,350,000) 3,000,000 6,000,000
Preference dividend (1,080,000) 1,080,000
Balance to common (2,430,000) (2,430,000)
Total 4,080,000 3,570,000
Divide by shares outstanding 60,000 60,000
Book value per share 68 59.5
B.
Balances 1,350,000 3,000,000 6,000,000
Preference 1/3 450,000 (450,000)
Ordinary 2/3 900,000 900,000
Total 2,550,000 5,100,000
Divide by shares outstanding 60,000 60,000
Book value per share 42.5 85

PROBLEM 7: SHAINA COMPANY

A.
Total shareholder’s equity 5,300,000
Preference share capital 6,000,000
Preference dividends 300,000 1,300,000
Ordinary shareholder’s equity 4,000,000/ 25,000 share
= 160

B. Book value per preference share= 1,300,000/ 10,000


= 130

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