Stockholders’ equity: Capital stock: 7% cumulative preferred stock, $100 par value $ 15,000,000 Common stock, $5 par value, 5,000,000 shares authorized, 4,000,000 shares issued and outstanding 20,000,000 Additional paid-in capital: Common stock 44,000,000 Retained earnings 64,450,000 Total stockholders’ equity What is the total amount of the annual dividends to which preferred stockholders are entitled? What was the average issuance price per share of common stock? What is the amount of legal capital and the amount of total paid-in capital? What is the book value per share of common stock, assuming no dividends in arrears? Is it possible to determine the fair market value per share of common stock from the stockholders’ equity section? Explain.
Stockholders’ equity: Capital stock: 7% cumulative preferred stock, $100 par value $ 15,000,000 Common stock, $5 par value, 5,000,000 shares authorized, 4,000,000 shares issued and outstanding 20,000,000 Additional paid-in capital: Common stock 44,000,000 Retained earnings 64,450,000 Total stockholders’ equity What is the total amount of the annual dividends to which preferred stockholders are entitled? What was the average issuance price per share of common stock? What is the amount of legal capital and the amount of total paid-in capital? What is the book value per share of common stock, assuming no dividends in arrears? Is it possible to determine the fair market value per share of common stock from the stockholders’ equity section? Explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Capital stock: | |
| 7% cumulative preferred stock, $100 par value | $ 15,000,000 |
|
Common stock, $5 par value, 5,000,000 shares authorized, 4,000,000 shares issued and outstanding |
20,000,000 |
| Additional paid-in capital: | |
| Common stock | 44,000,000 |
| 64,450,000 | |
| Total stockholders’ equity |
What is the total amount of the annual dividends to which preferred stockholders are entitled?
What was the average issuance price per share of common stock?
What is the amount of legal capital and the amount of total paid-in capital?
What is the book value per share of common stock, assuming no dividends in arrears?
Is it possible to determine the fair market value per share of common stock from the stockholders’ equity section? Explain.
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