Book Value Per Share and Other Computations
Shown Below Is

question 56

Essay

Book value per share and other computations
Shown below is information relating to the shareholders' equity of Silver Waste Management at December 31, 2009:
$\begin{array}{lr}\text {\( 8 \% \) non-cumulative preference share, \( \$ 150 \) par, 10,000}\\\text { shares authorized and 6,000 issued}&\$ 900,000\\\text {Ordinary share, \( \$ 6.50 \) par 500,000 shares authorized 400,000}\\\text { shares issued and outstanding } & \$ 2,600,000 \\\text { Share premium, preference shares } & \$ 132,000 \\\text { Share premium, ordinary shares } & \$ 2,970,000 \\\text { Retained earnings } & \$ 1,551,000\end{array}$ (a) White's total legal capital at December 31, 2009, is $_______________.
(b) The total amount of Silver's issued and fully paid capital at December 31, 2009, is $_________________.
(c) The average issue price per share of Silver's preference shares was $_______.
(d) The book value per share of ordinary shares is $_________ per share.
(e) The balance in Retained Earnings at the beginning of the year was $1,237,500, and profit for 2009 was $1,600,000. What was the amount of dividend declared on each share of ordinary shares during 2007? $______ per share

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Definitions:

Output Quantity

The amount of goods or services produced by a company or sector during a specific period.

Social Planner

An idealized figure in economic theory responsible for designing economic policies or interventions to achieve optimal allocation of resources and welfare in a society.

Social Cost

The total cost to society, including both private costs incurred by producers and external costs to other parties not involved in the transaction.

Private Value

The value of an asset or service as perceived by an individual or entity, not necessarily reflecting its market value.