Q. 3

Early in 2000, Steel Corporation was formed with authorization to issue 100,000 shares of $2 par value common stock and 50,000 shares of $10 par value cumulative preferred stocks. All common shares were issued at a price of $12 per share while preferred stocks were issued at par. The rate of divided on preferred stock is $ 0.5 per share. The corporation reported net income of $140,000 in 2000, $60,000 in 2001, and $90,000 in 2002. A $ 0.1 dividend per share were declared for each of the three years on common stocks. In 2001, the company purchased 5,000 of its own common shares in the open market at a price of $10 per share. In 2002, it reissued half of its treasury stock at a price of $20 per share.

Instructions

Fill in the following blanks (20)

Years	2000	2001	2002
Common stock ($)	-------------------------	-------------------------	-------------------------
Preferred stock ($)	-------------------------	-------------------------	-------------------------
Additional paid in capital on common stocks ($)	-------------------------	-------------------------	-------------------------
The number outstanding common stocks	-------------------------	-------------------------	-------------------------
The number authorized common stocks	-------------------------	-------------------------	-------------------------
The number issued common stocks	-------------------------	-------------------------	-------------------------
Total amount of dividend paid to common stocks ($)	-------------------------	-------------------------	-------------------------
Total amount of dividend paid to common stocks ($)	-------------------------	-------------------------	-------------------------
Retained earnings at the end of each year ($)	-------------------------	-------------------------	-------------------------
Shareholders equity ($)	-------------------------	-------------------------	-------------------------
Book value per share of common stock ($/share)	-------------------------	-------------------------	-------------------------
Earnings per share of common stock ($/share)	-------------------------	-------------------------	-------------------------
Market price per share of common stock	15	18	20
Dividend yield (%) on common stocks	-------------------------	-------------------------	-------------------------