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The stockholders' equity section of the balance sheet for Mann Equipment Company at December 31, Year 1, is as follows. Stockholders' Equity Paid-in capital Preferred
The stockholders' equity section of the balance sheet for Mann Equipment Company at December 31, Year 1, is as follows. Stockholders' Equity Paid-in capital Preferred stock, 7 par value, 64 cumulative, 100,000 shares authorized, 10,000 shares issued and outstanding $ 200,000 Common stock, $10 stated value, 200,000 shares authorized, 100,000 shares issued and outstanding 1,000,000 Paid-in capital in excess of par-Preferred 25,800 Paid-in capital in excess of stated value-Common 500,000 Total paid-in capital $ 1,725,000 Retained earnings 420,000 Total stockholders' equity $ 2,145,000 Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $26. Required a. What is the par value per share of the preferred stock? b. What is the dividend per share on the preferred stock? (Round your answer to 2 decimal places.) c. What was the average Issue price per share (price for which the stock was issued) of the common stock? e-1. If Mann declares a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? e-2. What amount will be transferred from the retained earnings account because of the stock split? e-3. Theoretically, what will be the market price of the common stock immediately after the stock split? b Par value per share Dividend per share Average issue price per share Shares outstanding after the split Amount transferred form retained earnings Market price of common stock after split 0-1 0-2 0-3
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