Book Value Per Share

(FAR.2637)

R. R. Ocampo
Problem
+ No. 2 +

+ +

-
-
Formula:
+

TSHE/outstanding shares

Outstanding = Issued+Subscribed-TS

TSHE P 49M
/ Outstanding OS 400T
BV/share P122.50

Answer is letter A
Problem No. 3 Answer is letter A
• Formula (with preference shares):
Preference: PSHE/outstanding PS
Ordinary: OSHE/outstanding OS
• Determination of PSHE
1) Liquidation value
2) Dividends (Cumulative/NC)
3) Participation (Participating/NP)

Liquidation value (200T x P115) P 23.0M

Dividends (P20M x .12) 2.4M
PSHE P 25.4M
/ Outstanding PS 200T
BV/share P 127
Problem No. 4 Answer is letter A

TSHE P 27M
Less PSHE
LV (50T x P120) P6M
Dividends - 6M
OSHE P 21M
/ Outstanding OS 150T
BV/share P 140
Problem No. 5
+

10,000,000 +

-
+
+

TSHE P 64.0M
Less PSHE
LV (150T x P110) P16.5M
Div. (P15M x .1 x 3) 4.5M 21.0M
OSHE P 43.0M
/ Outstanding OS 250T Answer is
BV/share P 172 letter C
Problem No. 6 Answer is letter C

TSHE P2,209,600
Less PSHE
LV (3,400 x P115) P391,000
Div. (P340T x .06) 20,400 411,400
OSHE P1,798,200
/ Outstanding OS 8,000
BV/share P 224.78
Problem No. 7
 PSHE OSHE
Total equity P2,209,600
Outstanding PV - PS ( 340,000) P340,000
Outstanding PV - OS ( 800,000) P800,000
L PS liquidation prem.
(3,400 x P15) ( 51,000) 51,000
PS dividend
(P340T x .06) ( 20,400) 20,400
D OS dividend
(P800T x .06) ( 48,000) 48,000
Balance for part. 950,200

P PS (340/1,140)
OS (800/1,140)
( 283,393)
( 666,807)
283,393
666,807
- 694,793 1,514,807
 PSHE OSHE
Total equity P2,209,600
Outstanding PV - PS ( 340,000) P340,000
Outstanding PV - OS ( 800,000) P800,000
L PS
BVliquidation
per share prem.
– Ordinary
(3,400 x P15) ( 51,000) 51,000
(P1,514,807/8,000)
PS dividend
= P189.35
(P340T x .06) ( 20,400) 20,400
D OS dividend
(P800T x .06) Answer is letter C
( 48,000) 48,000
Balance for part. 950,200

P PS (340/1,140)
OS (800/1,140)
( 283,393)
( 666,807)
283,393
666,807
- 694,793 1,514,807
DIY Drill Answers
1. D
2. B
3. C
4. C
5. C
6. B
 End 