Question
The stockholders' equity accounts ofBridgeport Corp.on January 1, 2022, were as follows. Preferred Stock (7%, $100par noncumulative,5,500shares authorized)$330,000Common Stock ($4stated value,330,000shares authorized)1,100,000Paid-in Capital in Excess
The stockholders' equity accounts ofBridgeport Corp.on January 1, 2022, were as follows.
Preferred Stock (7%, $100par noncumulative,5,500shares authorized)$330,000Common Stock ($4stated value,330,000shares authorized)1,100,000Paid-in Capital in Excess of Par ValuePreferred Stock16,500Paid-in Capital in Excess of Stated ValueCommon Stock528,000Retained Earnings756,800Treasury Stock (5,500common shares)44,000
During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb.1Issued5,500shares of common stock for $33,000.Mar.20Purchased1,100additional shares of common treasury stock at $7per share.Oct.1Declared a7% cash dividend on preferred stock, payable November 1.Nov.1Paid the dividend declared on October 1.Dec.1Declared a $0.50per share cash dividend to common stockholders of record on December 15, payable December 31, 2022.Dec.31Determined that net income for the year was $310,000. Paid the dividend declared on December 1.
Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note:Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.)(Round answers to 2 decimal places, e.g 17.50%.)
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