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Oriole Inc. | |
Answer to a | |
Calculation of Retained Earnings | Amount $ |
Net loss in 2018 | (246,000.00) |
Net loss in 2019 | (39,000.00) |
Net income in 2020 | 810,000.00 |
Retained Earnings | 525,000.00 |
Calculation of cumulative Preference Dividend | |
Preference Stock | 510,000.00 |
Preference Dividend rate | 8% |
Preference Dividend | 40,800.00 |
Preference Dividend - 2018 | 40,800.00 |
Preference Dividend - 2019 | 40,800.00 |
Preference Dividend - 2020 | 40,800.00 |
Cumulative Preference Dividend | 122,400.00 |
Calculation of Book Value per share | |
Common stock | 805,000.00 |
Add: Retained Earnings | 525,000.00 |
Less: Cumulative Preference Dividend | 122,400.00 |
Total Book Value | 1,207,600.00 |
Number of Common Shares outstanding | 805,000.00 |
Book Value per share | 1.50 |
So book value per share is $ 1.50. | |
Answer to b | |
Calculation of excess payment in case of redemption of Preferred Shares | |
Call value per share | 105.00 |
Par Value | 100.00 |
Difference | 5.00 |
Number of Preferred Shares | 5,100.00 |
Total value | 25,500.00 |
Excess payment upon redemption of Preferred Shares | 25,500.00 |
Calculation of Book Value per share | |
Amount $ | |
Common stock | 805,000.00 |
Add: Retained Earnings | 525,000.00 |
Less: Cumulative Preference Dividend | 122,400.00 |
Less: Excess payment upon redemption of Preferred Shares | 25,500.00 |
Total Book Value | 1,182,100.00 |
Number of Common Shares outstanding | 805,000.00 |
Book Value per share | 1.47 |
So book value per share is $ 1.47. |
Current Attempt in Progress Oriole Inc. began operations in January 2018 and reported the following results...
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