Shown Below Is Information Relating to the Shareholders' Equity of Reeve

question 14

Multiple Choice

Shown below is information relating to the shareholders' equity of Reeve Corporation as of December 31, 2009:
$\begin{array}{lr}8 \% \text { non-cumulative preference share, } \$ 100 \text { par } & \$ 600,000 \\\text { Ordinary shares, } \$ 10 \text { par, } 500,000 \text { shares authorized, } 120,000 \text { shares issued } & 1,200,000 \\\text { and outstanding } &\\\text { Share premium: ordinary share } & 600,000 \\\text { Retained earnings (Deficit) } & (60,000) \end{array}$



-Refer to the above data. What was the original issue price per share of ordinary shares?

• A) $10.00 per share.
• B) $2.40 per share.
• C) $15.00 per share.
• D) Some other amount.

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Definitions:

Supply

The total amount of a good or service available for purchase at any given price level in a market.

Technological Advance

Improvements or innovations in technology that enhance productivity, efficiency, or product quality.

Increase in Supply

A situation where the quantity of a good or service that producers are willing and able to sell, at a given price, rises.

Decrease in Supply

A situation where the quantity of a good or service that producers are willing to offer for sale at a given price level decreases.