Question
Soltech Company's common stock is currently selling on a stock exchangeat $ 90 per share, and it's current balance sheet shows the following stockholders equity
Soltech Company's common stock is currently selling on a stock exchangeat $ 90 per share, and it's current balance sheet shows the following stockholders equity section.
preferred stock 8% cumulative, $ _ par value, 1500 shares authorized, issued, and outstanding. ..... $375,000
common stock $_par value, 18,000 shares authorized, issued, and outstanding. ...... $900,000
retained earnings. .... $1,125,000
total stockholders equity. ... $2,400,000
required (round per share amounts to cents)
1.) what is the current market value ( price ) of this corporations common stock? 2. ) what are the par valuesof the corporations preferred stock and it's common stock? 3. ) if no dividends are in arrears, what are the book values per share of the preferred stock and the common stock? ( round per share values to the nearest cent. ) 4. ) if two years preferred dividends are in arrears, what are the book values per share of the preferred stock and it's common stock? ( round per share values to the nearest cent. ) 5. ) if two years preferred dividends are in arrears and the preferred stock is callable at $ 280 per share, what are the book values per share of the preferred stock and the common stock? ( round per share values to the nearest cent. ) 6. ) if two years preferred dividends are in arrears and the board of directors declares cash dividends of $ 100,000, what total amount will be paid to the preferred and to the common stockholders? what is the amount of dividends per share for the common stock? ( round per share values to the nearest cent. ) 7. ) discuss why the book value of common stock is not always a good estimate of its market value.
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