Ex. 320
The following information is available for Wenger Corporation:
Beginning ordinary shareholders' equity$700,000
Dividends paid to ordinary shareholders50,000
Dividends paid to preference shareholders30,000
Ending ordinary shareholders' equity800,000
Net income165,000
Instructions
Based on the preceding information, calculate return on ordinary shareholders' equity.
Ex. 321
The following financial information is available for Duncan Corporation.
2014 2013
Average ordinary shareholders' equity$1,600,000$1,200,000
Dividends paid to ordinary shareholders50,00030,000
Dividends paid to preference shareholders20,00020,000
Net income244,000170,000
Instructions
Calculate return on ordinary shareholders' equity for 2014 and 2013.
a
Ex. 322
The following information is available for Gordon Corporation:
Share capital–ordinary ($5 par)$550,000
Share premium–ordinary200,000
Retained earnings180,000
Treasury shares70,000
Ordinary shares issued110,000 shares
Ordinary shares outstanding100,000
Instructions
Based on the preceding information, calculate the book value per share.
Ex. 323
On December 31, 2014, Colaw Company reports the following amounts in its equity section:
Share capital–ordinary$2,400,000
Share premium–ordinary900,000
Retained earnings1,780,000
Treasury shares180,000
The ordinary shares have a stated value of $10 per share. One million ordinary shares are authorized and 40,000 shares are held in the treasury.
Instructions
Compute the book value per ordinary share