Question
Please in Hurry! Bell Inc. began operations on January 1,2017, and immediately issued 8000 common shares for cash of $2.5 per share. On January 3,
Please in Hurry!
Bell Inc. began operations on January 1,2017, and immediately issued 8000 common shares for cash of $2.5 per share. On January 3, 900 common shares were issued to promoters in exchange for their services in selling shares of the corporation. The costs were charged to organization expenses. The shares were valued at $1200. On January 12, 4000 preferred shares were issued for cash of $9.00 per share. On February 2,10000 common shares were issued in exchange two trucks at $ 30000. On February 26, 3000 more preferred shares were issued for total cash of $19000. Assume a loss of $9000 was realized in January, profit earned was $70000 and dividends totaling $8000 had been declared and paid in February and assume the assets totaled to $375000 at February 28,2017
1. What % of assets is financed by preferred shares?
2. Compute the book value?
3. Compute the return on equity given the average shareholder equity is $15000?
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