Question

Biebers Ltd has a statement of financial position which lists R1400 000 000 in assets. R900...

Biebers Ltd has a statement of financial position which lists R1400 000 000 in assets. R900 000 000

In ordinary shareholders equity. It has 10 000 000 ordinary shares outstanding. The replacement cost of

Its assets is R1 700 000 000. Its share price in the market is R49. Its book value per share is ?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Sol. Book Value Per Share = Shareholders Equity / No. of Shares outstanding

= (Total Assets - Total Liabilities) / No. of shares outstanding

= (1400,000,000 - 500,000,000) / 10,000,000

= 900,000,000 / 10,000,000

= R 90

WN.1 - Total Liabilities = Assets - Shareholders equity = 1400,000,000 - 900,000,000 = R 500,000,000

WN.2 - In calculation of book value per share the assets value needs to be taken is of value in books and not market value/replacement cost. As the replacement cost is taken while calculating market value per share.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Little Book LTD has total assets of $860 000. There are 75 000 shares of stock...
Little Book LTD has total assets of $860 000. There are 75 000 shares of stock outstanding, total book value of $750 000 with a market value of $12 a share. The firm has a profit margin of 6.5% and a total asset turnover of 1.5. Required: a) Calculate the company’s EPS? b) What is the market –to- book ratio?
The shareholders' equity section of the statement of financial position of Dolce Corporation as at December...
The shareholders' equity section of the statement of financial position of Dolce Corporation as at December 31, 2020, is given below: Shareholders' equity:                                                                                                                                               Preferred shares, $9 non-cumulative, unlimited authorized, 200,000 shares issued and $ 5,000,000 outstanding Common shares, unlimited authorized, par value $30, 250,000 shares issued and 7,500,000 outstanding Retained earnings                                                                                                                                                        4,500,000 Total shareholders' equity                                                                                                                                    $17,000,000 The board of directors for Dolce Corporation feels it is important that its shares trade at or below $50 per...
Bunny Ltd went into voluntary liquidation on 30 June 2020. Its summarised statement of financial position...
Bunny Ltd went into voluntary liquidation on 30 June 2020. Its summarised statement of financial position at that date is as follows: Bunny Ltd Statement of Financial Position As at 30 June 2020 Equity Current assets Share capital 59 000 Cash 10 000 Inventory 13 000 23 000 Non-current assets Land 42 000 Total assets 65 000 Current liabilities Payables 6 000 Total equity 59 000 Net assets 59 000 All assets realised amounted to $55 000. Payables allowed a...
Use the following information to answer the questions below. Market Value Statement of Financial Position Cash...
Use the following information to answer the questions below. Market Value Statement of Financial Position Cash $    50,000 Dividends Payable $           -   Fixed Assets $ 350,000 Equity $ 400,000 Total $ 400,000 Total $ 400,000 Total number of common shares outstanding: 10,000 Dividend per share: $        2.00 What is the current market price per share? Prepare the Market Value Statement of Financial Position once the dividends have been declared, but not yet paid. Ignoring tax effects, what will be the...
The statement of financial position of Soorkee Company as of December 1, 2011 had book and...
The statement of financial position of Soorkee Company as of December 1, 2011 had book and fair market values as shown below: Book Value Fair Value Current Assets P240 000 P280,000 Land 20,000 100,000 Building and Equipment (net) 400,000 270,000 Patents 10,000 30,000 Total Assets P670,000 P680,000 Liabilities P250,000 P250,000 Ordinary Share Capital 100,000 Accumulated Profits 320,000 430,000 Total Liabilities and Shareholders’ equity P670,000 P680,000 On December 1, 2011, Pulaskee Company purchased all of Soorkee Company’s share for P600,000. Required:...
Here are the financial statements of Kiwi Ltd. KIWI LTD Statement of financial position as at...
Here are the financial statements of Kiwi Ltd. KIWI LTD Statement of financial position as at 31 December 2015 2015 2014 Assets Cash $33 800 $42 900 Accounts receivable 36 400 18 200 Inventory 49 400 32 500 Property, plant, and equipment $91 000 $101 400 Less: Accumulated depreciation   (35 100)   55 900   (31 200)   70 200 Total $175 500 $163 800 Liabilities and equity Accounts payable $40 300 $55 900 Income tax payable 33 800 26 000 Bonds payable...
On 1 July 2020, Sydney Ltd took control of the assets and liabilities of Perth Ltd....
On 1 July 2020, Sydney Ltd took control of the assets and liabilities of Perth Ltd. At this date the statement of financial position of Perth Ltd was as follows:                                                                                                         Carrying amount        Fair value          Machinery                                                                                            $40,000         $67,000          Fixtures & fittings                                                                                  60,000         68,000          Vehicles                                                                                                  35,000         35,000          Current assets                                                                                       10,000         12,000          Current liabilities                                                                                 (16,000)         (18,000)          Total net assets                                                                                $129,000          Share capital (80 000 shares at $1.00 per share)                           80,000          General reserve                                                                                    20,000          Retained earnings                                                                                29,000          Total equity                                                                                        $129,000 Prepare the journal entries in the records of Sydney Ltd at 1 July 2020 in the following situation, assuming the...
You are presented with the following summarized accounts of Mtwapa Ltd. which has 40,000 issued ordinary...
You are presented with the following summarized accounts of Mtwapa Ltd. which has 40,000 issued ordinary shares:                              Mtwapa Ltd.                              Income Statement for the Year                              To 28 Feb. 2012 Sh. Sales (all credit) 1,200 Cost of sales 600 Gross profit 600 Administrative expenses (500) Debenture interest payable (10) Profit on ordinary activities 90 Taxation (30) 60 Dividends (40) Retained profit for the year 20                              Mtwapa Ltd.                              Statement of Financial Position                              At 28 Feb. 2012 Sh....
You are the new CFO of Risk Surfing Ltd, which has current assets of $ 7...
You are the new CFO of Risk Surfing Ltd, which has current assets of $ 7 920, net fixed assets of $17 700, current liabilities of $4 580, and long term debts of $5 890. Required: a. Calculate the owners’ equity and build a balance sheet for the company? b. How much is the networking capital of the company? c. Calculate the return on assets of the company given that Return on Equity is 30%? d. What is the PE...
PSB11.4 Here are the financial statements of Kiwi Ltd. KIWI LTD Statement of financial position as...
PSB11.4 Here are the financial statements of Kiwi Ltd. KIWI LTD Statement of financial position as at 31 December 2015 2015 2014 Assets Cash $33 800 $42 900 Accounts receivable 36 400 18 200 Inventory 49 400 32 500 Property, plant, and equipment $91 000 $101 400 Less: Accumulated depreciation   (35 100)   55 900   (31 200)   70 200 Total $175 500 $163 800 Liabilities and equity Accounts payable $40 300 $55 900 Income tax payable 33 800 26 000 Bonds...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT