Determining Book Value Per Share From the Above Information, Compute the Following:
(A) Number of to the Shareholders

question 81

Essay

Determining book value per share.
Shown below is information relating to the shareholders' equity of Churchill, Limited:
$\begin{array}{ll}6 \% \text { non-cumulative preference share, } \$ 100 \text { par } & \$ 1,200,000 \\\text { Ordinary share, } \$ 10 \text { par } 1,000,000 \text { shares authorized } & \$ 3,000,000 \\\text { Share premium, ordinary shares } & \$ 6,000,000 \\\text { Deficit (negative retained earnings) } & \$ 1,200,000\end{array}$
From the above information, compute the following:
(a) Number of preference shares issued and outstanding
(b) Average issue price per share of ordinary share
(c) Issued and fully paid capital
(d) Total shareholders' equity
(e) Book value per share of ordinary share

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Definitions:

Chi-Squared Distribution

A statistical distribution used in hypothesis testing that is derived from the sum of the squares of independent standard normal random variables.

Positively Skewed

Refers to a distribution of data where the tail on the right side of the distribution is longer or fatter than the left side, indicating that the majority of the data points are concentrated on the left.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or the parameter in a model.

Number

An arithmetic value that represents a particular quantity and is used in counting and making calculations.