Chapter 11 Assignment Required Saved Help Save Exit Submit

Chapter 11 Assignment: Required Saved Help Save & Exit Submit Check my work A portion of the stockholders\' equity section from the balance sheet of Walland Corporation appears as follows. 5 points Stockholders\' equity: Preferred stock, 93 cumulative, $50 par, 31,000 shares authorized, issued, and outstanding $1,550,000 Preferred stock, 12% noncumulative, $100 par, 5,600 shares authorized, issued, and 560, 000 2,150, 000 $4,260, 000 outstanding eBook Common stock, $5 par, 430,000 shares authorized, issued, and outstanding Total paid-in capital Ask Print tock was issued on January 1, Year 1 and that no dividends were paid during the first two years of operation. During the third year, Walland Corporation paid total cash dividends of $736,000 paid during the third year to each of the three classes of stock. a. Compute the amount of cash dividends b. Compute the dividends paid per share during the third year for each of the three classes of stock. (Round your answers decimal places.) c. What was the average issue price of each type of preferred stock? to 2 a. Cumulative preferred stock 10f 4 Next > rev Graw

Solution

Req a: Total dividend paid 736000 Less: Dividend to Cumulative Pref. 418500 (1550,000*9% *3 years) Less: Non Cumulative. Pref. dividend 67,200 ( $ 560000*12%*1 year) Dividend on Common Stock 250300 Cumulative Pref dividend 418500 Non-Cumulative Pref Dividend 67200 Dividend on common Stock 250300 Req b: Dividend per share; Cumulative pref share (418500/31000) 13.5 Non Cumulative Pref share (67200/5600) 12 Common Stock per share (250300/430000) 0.582 Rreq c: Average Issue price: Cumulative. Pref. shares (1550000/31000) 50 Non-Cumultive pref Share (560000/5600) 100