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1) Dees Corporation is a publicly owned company with 2009 Net Income of $375,000. Use the information taken from a recent balance sheet to answer

1) Dees Corporation is a publicly owned company with 2009 Net Income of $375,000. Use the information taken from a recent balance sheet to answer the questions that follow: Stockholders Equity Convertible $0.95 preferred stock, $2.75 par value 7,000,000 shares authorized; 250,000 shares issued and outstanding $687,500 Common stock, par value $0.75; 9,000,000 shares authorized $337,500 Contributed Capital in excess of par $562,500 Retained earnings $75,000 Total Stockholders Equity $1,662,500 a) How many share of common stock have been issued? (5 points) b) What is the total amount of annual dividends that have been paid to preferred stockholders? (5 points) c) What is the total amount of paid-in capital? (5 points) d) What is the market price per share of common stock? e) What is the book value per share of common stock? (10 points) f) What is the Earnings per share of common stock? g) Using the answers to (e) and (f) above, what can you say about investors confidence in Dees Corporation.

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