3. Problem The stockholders' equity section of a company's year-end balance sheet follows: Preferred stock, $50 par value, 9% cumulative and nonparticipating, 110,000 shares authorized 10,000 issued and outstanding $500,000

Paid-in capital in excess of par value, preferred stock $50,000

Total capital paid-in by preferred stockholders .. $550,000

Common stock, $0.50 par value, 12,500,000 shares, Authorized, 1,500,000 shares issued and outstanding . $750,000

Paid-in capital in excess of par value, common stock ... $150,000

Total capital paid-in by common stockholders . $900,000

Total paid-in capital $1,450,000

Retained earnings $2,690,000

Total stockholders' equity $4,140,000

Answer the following questions related to the stockholders equity section.

1. How many shares of preferred stocks were authorized? ________________

2. How many shares of common stocks were authorized? ________________

3. How many shares of Preferred stocks were issued? _____________________

4. How many shares of Common stocks were issued? _____________________

5. How much cash was received from the sale of all stocks? ________________

6. What are the two parts of stockholders equity? _____________and ______________

7. How much was received from each section? _____________and _________________

8. How many Preferred stocks can the company still issue? ________________________________

9. How many Common stocks can the company still issue? _________________________________

10. What is the most dividends the company can pay ? ________________________________

11. If the company pays dividends, how much will be allocated to Preferred stock ?______________

12. What is the book value per Preferred share? ______________________________