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this is all one question Liabilities Current Liabilities Long-Term Liabilities $7,500,000 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity $700,000 980,000 Preferred Stock Class A - Issued
this is all one question
Liabilities Current Liabilities Long-Term Liabilities $7,500,000 9,800,000 Total Liabilities $17,300,000 Stockholders' Equity $700,000 980,000 Preferred Stock Class A - Issued 70,000 shares 3.5% Class B - issued 98,000 shares $0.50 Common Stock- $5 par: Authorized 1,000,000 shares Issued 270,000 shares Additional Paid-in-Capital - Common Treasury Stock - 25,000 shares Retained Earnings 1,350,000 5,540,000 (883,000) 9.193.000 Total Equity $16,880,000 Total Liabilities and Stockholders' Equity $34,180,000 1) What is the debt ratio? 2) What is the annual dividend on the Class A preferred shares? 3) What is the annual dividend on the Class 8 preferred shares? 4) How many shares of common stock are outstanding? 5) What was the average price the company received for its common stock? 6) What is the average price the company paid to repurchase shares of common stock? 7) What reasonable conclusion can you draw from your response to (5) and (6) 8) What might justify your response to (7)? 9) What is the entry if the company declared a dividend of $0.75 on its common stock? 10) Record the payment of the dividend? 11) What is the effect on the accounting equation and the debt ratio if the company borrowed $500,000 to repurchase additional shares? 12) What is the effect on the accounting equation and the debt ratio if the company sold additional preferred stock Step by Step Solution
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