The balance sheet of Oak Manufacturing, Inc., reported the following: Notes to the financial statements indicate that
Question:
The balance sheet of Oak Manufacturing, Inc., reported the following:
Notes to the financial statements indicate that 9,000 shares of \(\$ 1.60\) preferred stock with a stated value of \(\$ 5\) per share were issued and outstanding. The preferred stock has a redemption value of \(\$ 25\) per share, and preferred dividends are in arrears for two years, including the current year. The additional paid-in capital was contributed by the common stockholders. On the balance sheet date, the market value of the Oak Manufacturing common stock was \(\$ 7.50\) per share.
\section*{Required}
1. Is the preferred stock cumulative or noncumulative, participating or nonparticipating? How can you tell?
2. What is the amount of the annual preferred dividend?
3. What is the total paid-in capital of the company?
4. What was the total market value of the common stock?
5. Compute the book value per share of the preferred stock and the common stock.
Computing and recording a corporation's income tax (Obj. 8)
Step by Step Answer:
Financial Accounting
ISBN: 9780133118209
2nd Edition
Authors: Charles T. Horngren, Jr. Harrison, Walter T.