Stockholder Equity Issues

Issue 1

What is the total cash the Ayer Corporation would receive if it issues 1,000 shares of $.02 par value per share common stock at a $9 market price per share?

Issue 2

The Waltham Corporation is authorized to issue a total of 10,000 shares of $.10 par value common stock.

Calculate the price per share the corporation must receive in order to raise $80,000 by issuing 10,000 common shares to the public.

Issue 3

The Leominster Corporation's April 12, 2017 balance sheet included the following information.

Total assets	$620,000
Total liabilities	$320,000
Stockholders' equity
Contributed Capital
Common stock, $.50 par, 400,000 shares issued	$200,000
Retained earnings	$100,000
Total stockholders' equity	$320,000

On April 16, 2017 the corporation used $20,000 cash to buy back and retire 40,000 shares of its common stock.

Calculate the percentage of the corporation's assets obtained through owners' investments after the 40,000 common shares were retired on April 16, 2017.

Issue 4

On April 4, the Nantucket Corporation acquired 20,000 shares of Cape Cod Corporation's common stock and still owns the shares on April 30. There are a total of 2,000,000 common shares of Cape Cod Corporation outstanding on April 30.

Calculate the percentage of the Cape Cod Corporation owned by the Fourth Corporation on April 30.

Issue 5

The Plymouth Corporation pays annual cash dividends of $.80 per share to its common stockholders.

Calculate the corporation's cash payments for dividends on common stock if it has 20,000,000 shares authorized, $.05 par value per share, 1,000,000.

Required:

Solve each of the above issues