Answer the following questions using the shareholders equity section of Technical Data Corporations balance sheet at June

Question:

Answer the following questions using the shareholders’ equity section of Technical Data Corporation’s balance sheet at June 30:

Shareholders’ equity

Preferred stock, cumulative, 20,000 shares authorized, 5,000 shares

issued and outstanding ...................$ 550,000

Additional paid-in capital, preferred stock ............ 50,000

Common stock, $1.25 par, 650,000 shares authorized,

350,000 shares issued .................. 437,500

Additional paid-in capital, common stock ............2,012,500

Retained earnings ......................1,425,000

4,475,000

Less: treasury stock (6,500 common shares) .......... (52,000)

Total shareholders’ equity .................. $4,423,000

1. How many shares of common stock are outstanding?

2. On average, what was the issue price of the common shares issued?

3. What is the par value of the preferred stock?

4. If the total annual dividend on preferred stock is $49,500, what is the dividend rate on preferred stock?

5. On average, how much per share did the company pay for the treasury stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...