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Problem 3 QRST Corporation is not going well, and the shareholders have decided to liquidate the business. The corporation reported a cash of P50,000 and
Problem 3 QRST Corporation is not going well, and the shareholders have decided to liquidate the business. The corporation reported a cash of P50,000 and building valued at P800,000. They owe P500,000 to various creditors. Upon checking the realtors, they can sell the building at P1,000,000 based on current prices. As of the date, QRST Corporation has 50,000 outstanding ordinary shares with par value of P5.00 and 10,000 outstanding preference shares with par value of P10.00 and liquidation value of P15.00. Required: (5 points each) 4. How much is the liquidation value of QRST Corporation? 5. How much is the liquidation value per share of ordinary share
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