You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and Masaya shares are valued at P50 and P60 respectively. Maligaya has total book value of P54,000,000 for its 1,200,000 outstanding ordinary shares. On the other hand, Masaya has total book value of P208,000,000 for its 4,000,000 outstanding ordinary shares. Compared to Masaya, a Maligaya share is over/(under) valued by how much?

You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and Masaya shares are valued at P50 and P60 respectively. Maligaya has total book value of P54,000,000 for its 1,200,000 outstanding ordinary shares. On the other hand, Masaya has total book value of P208,000,000 for its 4,000,000 outstanding ordinary shares. Compared to Masaya, a Maligaya share is over/(under) valued by how much?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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