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The year - end balance sheet of Ft . Smith Products includes the following stockholders' equity section ( with certain details omitted ) . Stockholders'
The yearend balance sheet of Ft Smith Products includes the following stockholders' equity section with certain details omitted
Stockholders' equity:
cumulative preferred stock, $ par value, shares authorized
$
Common stock, $ par value, shares authorized
Additional paidin capital: common stock
Retained earnings
Total stockholders' equity
Instructions
From this information, compute answers to the following questions.
a How many shares of preferred stock have been issued?
b What is the total amount of the annual dividends paid to preferred stockholders?
c How many shares of common stock are outstanding?
d What was the average issuance price per share of common stock?
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e What is the amount of legal capital?
f What is the total amount of paidin capital?
g What is the book value per share of common stock? There are no dividends in arrears.
h Assume that retained earnings at the beginning of the year amounted to $ and that net income for the year was $ What was the dividend declared during the year on each share of common stock? Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.
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