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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