Question
Raphael Corporations balance sheet shows the following stockholders equity section. Preferred stock5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common
Raphael Corporations balance sheet shows the following stockholders equity section.
Preferred stock5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding | $ | 50,000 | |||||||
Common stock$___ par value, 4,000 shares authorized, issued, and outstanding | 100,000 | ||||||||
Retained earnings | 370,000 | ||||||||
Total stockholders' equity | $ | 520,000 | |||||||
1. What are the par values of the corporations preferred stock and its common stock?
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2. If no dividends are in arrears at the current date, what is the book value per share of common stock?
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3. If two years preferred dividends are in arrears at the current date, what is the book value per share of common stock?
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4. If two years preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $20,000, what total amount will be paid to the preferred and to the common shareholders?
Total amount paid to the preferred shareholders | |
Total amount paid to the common shareholders |
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