Question
[The following information applies to the questions displayed below.] Preferred stock5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 60,000 Common stock$___
[The following information applies to the questions displayed below.]
Preferred stock5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding | $ | 60,000 |
Common stock$___ par value, 4,000 shares authorized, issued, and outstanding | 160,000 | |
Retained earnings | 390,000 | |
Total stockholders' equity | $ | 610,000 |
1. What is the current market value (price) of this corporations common stock?
Market price | ? | per share |
2. What are the par values of the corporation's preferred stock and its common stock?
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3. If no dividends are in arrears, what are the book values per share of the preferred stock and the common stock?
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Book Value Per Common Share
Choose Numerator: | / | Choose Denominator: | = | Book Value Per Common Share |
Stockholders' equity applicable to common shares | / | Number of common shares outstanding | = | Book value per common share |
? | / | ? | = | ? |
4. If two years' preferred dividends are in arrears, what are the book values per share of the preferred stock and the common stock?
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5. If two years preferred dividends are in arrears and the preferred stock is callable at $70 per share, what are the book values per share of the preferred stock and the common stock?
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6.1 If two years preferred dividends are in arrears and the board of directors declares cash dividends of $12,200, what total amount will be paid to the preferred and to the common shareholders?
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6.2 What is the amount of dividends per share for the common stock? (Round your answer to two decimal places.)
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