Question
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
-
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 question 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
How many shares of common stock have been issued?
250,000 shares of common stock
7,000,000 shares of common stock
9,000,000 shares of common stock
450,000 shares of common stock
-
What is the total amount of annual dividends that have been paid to preferred stockholders?
$237,500
$687,500
$6,650,000
$19,250,000
-
What is the total amount of paid-in capital?
$1,662,500
$687,500
$1,587,500
$1,025,000
-
What is the market price per share of common stock?
$0.75
$0.95
$2.75
$2.00
-
What is the book value per share of common stock?
$2.17
$2.00
$2.75
$0.95
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started