Question
The stockholders equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $100 par noncumulative, 4,100 shares authorized) $246,000 Common
The stockholders equity accounts of Swifty Corporation on January 1, 2017, were as follows.
Preferred Stock (8%, $100 par noncumulative, 4,100 shares authorized) | $246,000 | |
Common Stock ($4 stated value, 331,000 shares authorized) | 1,103,333 | |
Paid-in Capital in Excess of Par ValuePreferred Stock | 12,300 | |
Paid-in Capital in Excess of Stated ValueCommon Stock | 529,600 | |
Retained Earnings | 689,000 | |
Treasury Stock (4,100 common shares) | 32,800 |
During 2017, the corporation had the following transactions and events pertaining to its stockholders equity.
Feb. | 1 | Issued 5,020 shares of common stock for $35,140. | |
Mar. | 20 | Purchased 1,800 additional shares of common treasury stock at $7 per share. | |
Oct. | 1 | Declared a 8% cash dividend on preferred stock, payable November 1. | |
Nov. | 1 | Paid the dividend declared on October 1. | |
Dec. | 1 | Declared a $0.85 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 | % |
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