ASSET-BASED VALUATION

1 Book value method

2 Replacement value method
3 Reproduction value method
4 Liquidation value method

The following data were gathered from the annual report of Thorn Products:
Market price per share 30
No. of ordinary shares 10,000
Preferred stock, 5%, P100 par 10,000
Ordinary equity 120,000

Book value per share? 12.00

The following information was reported by Angeles Company in their financial statements:
Current assets 250,000
Non-currents assets 760,000
Current Liabilities 60,000
Non-currents liabilities 350,000
No. of outstanding shares 12,000
Book value per share? 50.00

Sam, an analyst, is looking at the 2023 Financial Statements of Smith Company and gathered the following data:
Cash 310,000
Receivables 320,000
Inventory 200,000
Property, plant and equipment 690,000 1,520,000
Accounts payable 175,000
Long-term notes payable 500,000 675,000
Ordinary share capital (P1.25 par) 312,500 845,000
There are no other isssuances or buybacl of shares in 2023. 250,000
How much is book value per share of Smith Company? 3.38

XYZ Corporation showed the followig balances in its financial statements in 2023:
Current assets 510,000
Current liabilities 355,000
Non-current assets 1,065,000
Non-current liabilities 1,000,000
Outstanding ordinary shares 500,000
How much is the book value per share? 0.44

Accounting records of Arabia Company showed the following items as of December 31:
Current assets 950,000
Current liabilities 600,000
Non-current assets 3,500,000
Non-Current liabilities 2,000,000
Ordinary shares outstanding, Jan. 1 400,000
In July 1, Arabia Company issued additional 100,000 shares to fund its investment plan.
How much is the book value of Arabia Company as of December 31?
1,850,000
How much is the book value per share of Arabia Company as of December 31?
Ordinary shares outstanding, Dec. 31 500,000
3.70