The following information was taken from the statement of shareholders equity of Zielow Siding as of December 31, 2012. The par value of the Zielow stock is $5, and as of the beginning of 2012, the company held 400 shares in treasury.

(a) Zielow issued common stock at one time prior to 2012. How many shares were issued and at what price per share?(b) Zielow purchased treasury stock at one time prior to 2012. How many shares were purchased and at what price?(c) During 2012, Zielow acquired Timeco and issued its own shares as payment in the transaction. How many shares were issued, and what was the market value of Timeco at the time of the acquisition?(d) At what price were the stock options exercised, and how did that price compare to the market value of Timeco at the market value of the acquisition?(e) Compute the per-share dividend rate by Zielow during 2012. Assume that treasury shares acquired in 2012 were purchased at the same price per share prior to 2012.

Transcribed Image Text:

Common Stock Additional Paid-In Capital Retained Treasury Stock Earnings Beginning balances Acquisition of Timeco S 8.000 SI0,000 S25,000 S34,000 5,000 Treasury share purchases Exercised stock options 4.000 1,000 800 Net income Cash dividends Ending balances 5.600 (3,520) S36.080 S16.000 $12.000 S48,800