EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 2, Problem 4PROB
Summary Introduction
The common stock at par is the minimum value or usually very small value (like $0.1 or $0.01) of the common stock which is listed in the corporate charter. The stock does not have any part value.
Paid-in capital is the amount which is raised through the sale of equity by the firm. It is the equity value which is paid-in by investors during the issuance of common stock.
RR issued the common stock of 100,000 at $7 each share. The par value of the stock is $3 per share.
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a. What is the average selling price of the stock that had been issued as of december 31, 2021?
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The balance sheet caption for common stock is the following:
Common stock, $2 par value, 2,070,000 shares authorized,
1,310, 000 shares issued, 1,050,000 shares outstanding
$?
Required:
a. Calculate the dollar amount that will be presented opposite this caption.
b. Calculate the total amount of a cash dividend of $0.27 per share.
c. What accounts for the difference between issued shares and outstanding shares?
a. Amount
b. Cash dividend
c. Difference between issued shares and outstanding shares
10. At December 31, 2015, the records of Kosme Corporation provided the following:
(see attached image for the given. please asnwer it. thank you so much!!)
Direction:a. Give the number of shares authorized ___ issued ___b. Give the number of shares outstanding ___c. Give the amount of Additional-Paid-In capital. ___d. Give the earnings per share. ___ Round your answer to two decimal places.e. Amount of dividends paid during 2015. ___f Amount of treasury shares reported in the stockholders' equity ___g. Amount of free retained earnings on December 31. ___
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