Answer:
26.65
Explanation:
The computation of the book value of an ordinary share is shown below
But before that the following calculations to be done
Balance for equity shares is
= Total shareholder equity - dividend paid to preference shareholders - redemption of preference shares
= 8,250,000 - (20,000 × 100 × 12% ×3) - (20,000 × 110)
= 8,250,000 - 720,000 - 2,200,000
= 5,330,000
And, the number of shares is 200,000
So, the book value of the ordinary share is
= 5,330,000 ÷ 200,000
= 26.65
