Book value per share and other computations Shown below is information relating to the stockholders' equity of Silver Waste Management at December 31, 2015:

a) Silver's total legal capital at December 31, 2015, is $_______________.
(b) The total amount of Silver's paid-in capital at December 31, 2015, is $_________________.
(c) The average issue price per share of Silver's preferred stock was $_______.
(d) The book value per share of common stock is $__________ per share.
(e) The balance in Retained Earnings at the beginning of the year was $1,237,500, and net income for 2015 was $1,600,500. What was the amount of dividend declared on each share of common stock during 2015? $_______ per share.

What will be an ideal response?

(a) $900,000 + $2,600,000 = $3,500,000 total legal capital
(b) $900,000 + $2,600,000 + $132,000 + $2,970,000 = $6,602,000 total paid-in capital
(c) ($900,000 + $132,000)/6,000 shares = $172 per-share issue price (preferred stock)
(d) $14,506 book value per share of common stock
$2,600,000 + $132,000 + $2,970,000 + $1,551,000 = $7,253,000 common stockholders equity $7,253,000 equity allocable to common stock/400,000 shares = $18.13 per share
(e) $3.04 dividend per common share

$1,215,000/400,000 shares = $3.04 per share of common stock.