Question
The stockholders equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,250 shares authorized) $255,000 Common
The stockholders equity accounts of Pronghorn Corp. on January 1, 2017, were as follows.
Preferred Stock (6%, $100 par noncumulative, 4,250 shares authorized) | $255,000 | |
Common Stock ($3 stated value, 350,000 shares authorized) | 875,000 | |
Paid-in Capital in Excess of Par ValuePreferred Stock | 12,750 | |
Paid-in Capital in Excess of Stated ValueCommon Stock | 560,000 | |
Retained Earnings | 686,000 | |
Treasury Stock (4,250 common shares) | 34,000 |
During 2017, the corporation had the following transactions and events pertaining to its stockholders equity.
Feb. | 1 | Issued 5,440 shares of common stock for $32,640. | |
Mar. | 20 | Purchased 1,500 additional shares of common treasury stock at $9 per share. | |
Oct. | 1 | Declared a 6% cash dividend on preferred stock, payable November 1. | |
Nov. | 1 | Paid the dividend declared on October 1. | |
Dec. | 1 | Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. | |
Dec. | 31 | Determined that net income for the year was $275,600. Paid the dividend declared on December 1. |
Calculate the payout ratio, earnings per share, and return on common stockholders equity. (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.)
Payout ratio | enter the payout ratio in percentages rounded to 1 decimal place | % | |
Earnings per share | $enter earnings per share in dollars rounded to 2 decimal places | ||
Return on common stockholders equity | enter the return on common stockholders' equity ratio in percentages rounded to 1 decimal place | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started