Chapter 13 discussion worteheut bce De Lottomas De Review V

Chapter 13 discussion worteheut - bce De Lottomas De Review View Heig tuduhat you sy calibr - 11 - A A- - PWap Test BI U.C. A. * * -Merge & Canter$ % I formatting: Table mys: $40,000 216,000 1 Stockholders\' Equity: 25.5% preferred stock, $50 par value, callable at $101 per share, 3 1200 shares authorized... -- Common Stock, $1.5 par value, 200000 shares authorized. 5 Additional paid-in capital: 6 Preferred Stock... 7 Common Stock... 8 Retained Earnings..... Total stockholders\' equity $30,000 200.000 318,000 226,800 $800,800 Questions: 3 How many shares of preferred stock have been issued? What is the total anual dividend requirement on the outstanding preferred stock? How many shares of common stock have been isued? What is the average price per share received for common shares issued? 7 What is the total amount of legal capital? What is the total paid-in capital? What is the book value per share of common stock? (no dividends in arrears) Sheett

Solution

1) Number of shares of preferred stock = Total par value of preferred stock/Par value of one preferred stock = 40000/50 = 800 2) Annual dividend on preferred stock = number of preferred shares*par value*dividend rate = 800*$50*5.5% = $        2,200 3) Number of shares of common stock = Total par value of common stock/Par value of one share = 216000/1.5 = 144000 4) Average share per price received for common shares = (total par value of common stock issued+additional paid in capital-common stock)/Number of common shares = (216000+288000)/144000 = $           3.50 5) Legal capital = The total par value of common and preferred stock; it cannot be legally distributed = 40000+216000 = $    256,000 6) Paid in capital = Total of par value and additional paid in capital of common and preferred capitl= 40000+216000+30000+288000 = $    574,000 7) Book value per share of common stock = (Total equity-par value of preferred stock)/Number of shares of common stock = (800800-40000)/144000 = $           5.28