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Book Value Per Share and Other Computations
Shown Below Is

Question 123

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Book value per share and other computations
Shown below is information relating to the shareholders' equity of Silver Waste Management at December 31, 2009:
8% non-cumulative preference share, $150 par, 10,000 shares authorized and 6,000 issued$900,000Ordinary share, $6.50 par 500,000 shares authorized 400,000 shares issued and outstanding $2,600,000 Share premium, preference shares $132,000 Share premium, ordinary shares $2,970,000 Retained earnings $1,551,000\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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(a) $900,000 + $2,600,000 = $3,500,000 ...

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