ASSIGNMENT #2:

Net Book Value of Assets= Total Assets- Total Liabilities

Number of Outstanding Shares

Current Assets P23,500,000

Non-Current Assets 400,000,000
Total Liabilities P423,500,000
Current Liabilities 15,000,000
Non-Current Liabilities 20,000,000
Total Liabilities P35,00,000

NBV of Assets=P423,500,000-35,000,000
3,000,000 shares 2

NBV of Assets= P388,500,000

3,000,000 shares

NBV of Assets= P129.5 or 130 /share 1

Replacement value per share= Net Book Value + Replacement Adjustment

Number of Outstanding Shares

Non-current Assets P400,000,000

Premium on Replacement 80%
Adjusted Non-current Assets P320,000,000 3

Total Adjusted Non-current Assets P320,000,000

Add: Current Assets 23,500,000
Total Assets-Replacement value P343,500,000

Replacement Value= P343,500,000-35,000,000

3,000,000 shares 5

Replacement Value= P308,500,000

3,000,000 shares

Replacement Value= P102.8 or 103 per share 4