Foley Corporation has the following capital structure at the beginning of the year: 5% Preferred stock, $50
Question:
Foley Corporation has the following capital structure at the beginning of the year:
5% Preferred stock, $50 par value, 20,000 shares authorized,
6,000 shares issued and outstanding$300,000
Common stock, $10 par value, 60,000 shares authorized,
40,000 shares issued and outstanding400,000
Paid-in capital in excess of par110,000
Total paid-in capital810,000
Retained earnings440,000
Total stockholders' equity$1,250,000
Required:
following transactions which occurred consecutively:
(a) A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.
(b) A 15% common stock dividend was declared. The average fair value of the common stock is $25 per share.
Expert Answer:
John E Freunds Mathematical Statistics With Applications
ISBN: 9780134995373
8th Edition
Authors: Irwin Miller, Marylees Miller
