Check my work 4 Problem 115A Analysis of an Equity Section o

Check my work 4 Problem 11.5A Analysis of an Equity Section of a Balance Sheet (L011-4, L011-5) The year-end balance sheet of Ft. Smith Products includes the following stockholders\' equity section (with certain details omitted) 10 points Stockholders\' equity: Skipped 11/2% cumulative preferred stock, $100 par value, 100,000 shares $ 2,500,000 authorized Common stock, $2 par value, 900,000 shares authorized Additional paid-in capital: common stock Retained earnings 900,000 8, 300,000 2, 595, 000 $14,295,000 eBook Total stockholders\' equity Ask Print Required: ReferencesFrom this information, compute answers to the following questions. a. How many shares of preferred stock have been issued? b. What is the total amount of the annual dividends paid to preferred stockholders? (Round intermediate calculations to 2 decimal places.) c. How many shares of common stock are outstanding? d. What was the average issuance price per share of common stock? (Round your answers to 2 decimal places.) e. What is the amount of legal capital? f. What is the total amount of paid-in capital?

Solution

a) Number of issued share of preferred stock = 2500000/100 = 25000 Shares

b) Annual preferred stock dividend = 2500000*7.5% = $187500

c) Common Stock outstanding = 900000/2 = 450000 Shares

d) Average issue price of Common Stock = (900000+8300000)/450000 = 20.44 per share

e) Legal capital = 2500000+900000 = 3400000

f) Paid in capital = 3400000+8300000 = 11700000

g) Book value per share of Common Stock = (14295000-2500000)/450000 = 26.21 per share

h) Common Stock dividend per share = Assumption is not showing proper find attched proper image of question