Problem 18-5

Preference as to assets
Excess 6% 8% Ordinary
P 530,000.00 3,000,000.00 2,000,000.00 5,000,000.00
-540,000.00 540,000.00
-160,000.00 160,000.00
P -170,000.00 -170,000.00
Balance 3,540,000.00 2,160,000.00 4,830,000.00
Outstanding shares / 30,000.00 / 20,000.00 / 50,000.00
Book value per share P 118 P 108 P 96.6

Preference as to dividends
Excess 6% 8% Ordinary
P 530000 3,000,000.00 2,000,000.00 5,000,000.00
-360,000.00 360,000.00
P 170,000.00
180/340 90,000.00
160/340 80,000.00
Balance 3,450,000.00 2,080,000.00 5,000,000.00
Outstanding shares / 30,000.00 / 20,000.00 / 50,000.00
Book value per share P 115 P 104 P 100