Question
The year-end statement of financial position of Smithfield Products includes the following shareholders' equity section (with certain details omitted): Shareholders' equity: 71/2% noncumulative preference shares,
The year-end statement of financial position of Smithfield Products includes the following shareholders' equity section (with certain details omitted): |
Shareholders' equity: | ||
71/2% noncumulative preference shares, $100 par value, 100,000 shares authorized | $ | 2,800,000 |
Ordinary shares, $2 par value, 900,000 shares authorized | 900,000 | |
Share premium: Ordinary shares | 8,200,000 | |
Retained earnings | 2,595,000 | |
Total shareholders' equity | $ | 14,495,000 |
From this information, compute answers to the following questions: |
a. | How many shares of preference share have been issued? |
Number of shares of preference share |
b. | What is the total amount of the annual dividends paid to preference shareholders? (Round intermediate calculations to 2 decimal places. Omit the "$" sign in your response) |
Annual preference share dividend | $ |
c. | How many shares of ordinary shares are outstanding? |
Number of shares of ordinary shares |
d. | What was the average issuance price per share of ordinary shares? (Round your answers to 2 decimal places. Omit the "$" sign in your response) |
Average issuance price | $ |
e. | What is the amount of legal capital? (Omit the "$" sign in your response) |
Legal capital | $ |
f. | What is the total amount of paid-in capital? (Omit the "$" sign in your response) |
Paid in capital | $ |
g. | What is the book value per share of ordinary shares? (There are no dividends in arrears.) (Round your answers to2 decimal places. Omit the "$" sign in your response) |
Book value per share | $ |
h. | Assume that retained earnings at the beginning of the year amounted to $717,500 and that profit for the year was $3,970,000. What was the dividend declared during the year on each share of ordinary shares? (Hint: Profit increases retained earnings, whereas dividends decrease retained earnings.) (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response) |
Dividend per share of ordinary shares | $ |
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