ACC 102 Lecture Notes - Preferred Stock, Common Stock
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Preferred stock— $25 par value, 10,000 shares authorized, 5,200shares issued and outstanding | $ | 130,000 | |
Common stock—$10 par value, 100,000 shares authorized, 80,000shares issued and outstanding | 800,000 | ||
Total paid-in capital | $ | 930,000 | |
Retained earnings | 550,000 | ||
Total stockholders’ equity | $ | 1,480,000 | |
Raphael Corporation’s common stock is currently selling on astock exchange at $171 per share, and its current balance sheetshows the following stockholders’ equity section:
Preferredstock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding | $ | 85,000 |
Commonstock—$___ par value, 4,000 shares authorized, issued, and outstanding | 200,000 | |
Retainedearnings | 340,000 | |
Total stockholders' equity | $ | 625,000 |
1. What is the current market value (price) ofthis corporation’s common stock? 2. What are the par values of the corporation’spreferred stock and its common stock? 3. If no dividends are in arrears, what is thebook value per share of common stock? 4. If two years’ preferred dividends are inarrears, what is the book value per share of common stock? 5.1 If two years’ preferred dividends are inarrears and the board of directors declares cash dividends of$20,850, what total amount will be paid to the preferred and to thecommon shareholders? |