1.At December 31, the stockholders' equity section shows:

Ordinary share capital, P5 par value; 1,320,000 shares issued and 1,200,000 shares outstanding: P6,600,000; Share Premium: P1,400,000; Retained earnings: P500,000; Treasury shares, (120,000 shares): P700,000; Total shareholders' equity - P7,800,000. How much is the book value per share?*

2.When a corporation's earnings and dividends are exemplary good, which type of preference shares will yield the highest benefit for ordinary shareholders?*

noncumulative, nonparticipating

noncumulative, fully participating

cumulative, nonparticipating

cumulative, participating

cumulative, partially participating

3.Which statement is incorrect?*

Book value per share is the claim of a shareholder in the net assets of the corporation for every share held in the corporation.

If a corporation has 2 classes of shareholders, the book value per share should be computed for both preference shares and ordinary shares.

Book value per share assumes that assets are realized at book values and liabilities are liquidated at book values. Total gains (losses) on realization of assets and liquidation of liabilities, if there are any, are assumed to sum up to zero.

Excess over par refers to the amount of shareholders' equity in excess of the total par value of the preference shares and ordinary shares issued by the corporation.

none of the above

4.Potential ordinary shares include the following, except:*

financial liabilities (or equity instruments), including preference shares, that are convertible into ordinary shares

options and warrants

shares that would be issued upon the satisfaction of conditions resulting from contractual arrangements, such as the purchase of a business, or other assets

treasury shares that have been cancelled

none of the above

5.ABC Cor. reported P3,000,000 of ordinary share capital and P4,500,000 of additional paid-in capital on its balance sheet. Ordinary shares issued and outstanding is 500,000 shares. The book value per share is*

6.Which statement is incorrect?*

Dilution is an increase in earnings per share when convertible instruments are converted to ordinary shares.

Diluted EPS is required when there are potential shares outstanding.

Dilutive potential shares shall be deemed to have been converted into shares at the start of the period or, if later, the date of the issue of the potential shares

Options and warrants are dilutive, when they would result in the issue of shares for less than the average market price of shares during the period.

none of the above

7.Book value per share is ____ oriented while market value per share is ____oriented.*

short term; long term

long term; short term

future; historical

historical; future

8.The book value per share*

is usually a close approximation of the market price per share.

is the same as the par value per share.

may be useful in determining the trend of a shareholders' per share equity in a corporation.

always falls within the annual range of a company's market value per share.

9.On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On March 1, XYZ sold an additional 500,000 shares on the open market at P20 per share. XYZ issued a 20% share dividend on May 1. On August 1, XYZ purchased 280,000 shares and immediately retired the shares. On November 1, 400,000 shares were sold for P25 per share. What is the weighted-average number of shares outstanding for 2020?*

10.ABC Co. 's shareholders' equity on December 31,2020 are as follows: 7% preference shares P100 par P3,000,000; Ordinary share capital, 50,000 shares P1,500,000; Donated capital P500,000; Accumulated profits P4,500,000. All preference dividends have been fully paid. If preference shares have total liquidation value of P3,200,000, how much is the book value per ordinary share?*

11.ABC Company had 600,000 ordinary shares outstanding on January 1, 2020. During 2020, ABC Company issued rights to acquire on ordinary share at P10 in the ratio of 1 new share for every 4 shares outstanding. The market value of ordinary share immediately prior to the rights issue is P35. The rights were exercised on October 1, 2020. The net income of ABC Company for 2020 is P8,550,000. In its 2020 income statement, how much should ABC Company report as basic EPS?*

12.ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. Diluted EPS for 2020 is (rounded to the nearest penny)*

PLEASE HELP ME ANSWER THE FOLLOWING