Questions: E, F, G, and H

The year-end balance sheet of Ft. Smith Products includes the following stockholders equity section (with certain details omitted).

Stockholders' equity:
7 1/2% cumulative preferred stock, $100 par value, 100,000 shares authorized	$	2,400,000
Common stock, $2 par value, 900,000 shares authorized		900,000
Additional paid-in capital: common stock		8,325,000
Retained earnings		2,595,000
Total stockholders' equity	$	14,220,000

e. What is the amount of legal capital?

f. What is the total amount of paid-in capital?

g. What is the book value per share of common stock? (There are no dividends in arrears.) (Round your answers to 2 decimal places.)

h. Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000. What was the dividend declared during the year on each share of common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.) (Round your answers to 2 decimal places.)